Contact Us1099-Misc I am preparing a 1099misc for a nonemployee. We gave this individual a check in the amount of $623, however, the check broke down into two parts: $678 non-employee compensation LESS an amount of $55 for which the individual owed us. Is the 1099misc to be filled out for the portion of that individual’s check eligible for 1099 ($678) or for the actual check amount ($623)?
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Pat Michael, EA
Based on the information you have supplied I would issue the 1099-MISC for $678.00. Just because the non-employee owed you $55.00 doesn't mean he or she didn't earn $678.00. In other words you paid the worker what he or she earned.($678.00) They took $55.00 of that and paid off a debt. The money didn't move from you to them and back to you again but the end result is the same.
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496 weeks ago