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Accounting, Payroll & Pension Issues/non-employee compensation under $600
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Have small business - was helping a homeless lady. Paid her $200 for odd jobs around shop. Got SSN, no address. Under $600 so no 1099-MISC. How do I report this on my taxes? I am doing them myself. Thanks, S-
Technically, you do not have to report 1099 independent contractor payments if the total paid during the year is less than $600. Please check with www.irs.gov -- the 1099 form instructions for this answer.
The payments are deductible on your income tax return. The item is reported depending on the type of expense -- from your description I would expect this to be reported as just contract labor or as maintenance costs or clean-up costs.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur Naman
Expertise
General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience
30 years' experience doing tax and accounting work
Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
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