Will You Get A 1099?
Follow Max as he gets hired.
Thank you! I won’t let you down!
Max will sign a W9 before he works
Max works hard as an indy contractor and makes a lot of money.
At the end of the year, the business owner will process the 1099’s and send them to the IRS.
It could be a 1009-Misc — Normally for regular contractors like bookkeepers, plumbers, graphic artists, etc.
It could be a 1099-K - Usually for drivers like Uber and Lyft. Or people who buy and sell online like Etsy, eBay, and Amazon you will get a 1099-K from these 3rd parties.
Or it could even be a 1099-NEC — This is the new kid on the block. Lawyers and other professional corporations are now supposed to get a 1099-NEC and they won’t like it!
No matter which one the IRS will take any of them, but the owner should file them correctly.
Max then files his taxes.
To recap the process,
Max fills out a W9 at the start of the project.
If he earns over $600 or more at the end of the year Max will receive 1099.
If Max keeps his clients happy he will make more money!
The business owner will send a form to the IRS telling them about the payment to Max and the records better match!