# Quick 1099 question for a driveway



## daninline (Nov 1, 2004)

I have a question I have a customer from last year calling me to plow his driveway but.
Now he rents the house out and wants me to give him my SS# so he can 1009 me at the end of the year.
Now I do pay my taxes for my biz but I don't think I want to give this person my SS#

this is only about a $400 a year account.

I'm thinking of getting a LLC to cover my a$$ and then I would think it would be easier.

Now I just need to find info on a LLC.

Thanks.


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## SnoFarmer (Oct 15, 2004)

He will still need you to fill out the 1099 it is for his taxes and for yours.

It does not matter if you are a LLC or not.


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## LLM Ann Arbor (Sep 18, 2006)

Dont fall for it. Tell him no way.

Tell him to make the check out to your business name and you willo handle filing it as income.

Ive never heard something so rediculous.

You are a contractor. Not an Independent contractor.


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## SnoFarmer (Oct 15, 2004)

LLM Ann Arbor;328318 said:


> Dont fall for it. Tell him no way.
> 
> Tell him to make the check out to your business name and you willo handle filing it as income.
> 
> ...


 

Daninline"Now he rents the house out "
That makes him a landlord he has a small business. 
He needs the Info for his taxes.
If you LLM knew any thing about business you would not have said what you did.

What do you mean by this statement? LLM"You are a contractor. Not an Independent contractor."

What difference would the name on the check make?
LLM, what is a 1099?


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## lawnMaster5000 (Jul 28, 2000)

You are correct you do not need to give him your SS#. However you do need to give him your EIN.

I wasn't able to find the specific explanation on the IRS site but the 1099 is basically a form to show where a company spent its money during a given year.

They are very common and no big deal.

Search on here, I know it has been discussed several times before.

EDIT:
Search Lawnsite.com it has been discussed several times on there. I dont know if it has been discussed on here or not. I would assume so.


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## flykelley (Dec 29, 2003)

daninline;328297 said:


> I have a question I have a customer from last year calling me to plow his driveway but.
> Now he rents the house out and wants me to give him my SS# so he can 1009 me at the end of the year.
> Now I do pay my taxes for my biz but I don't think I want to give this person my SS#
> 
> ...


[If it is under $ 700.00 a year he doesn't need to give you a 1099. iF it is over just give him your EIN. I would never give him my SS number, thats why you have a EIN.

Regards Mike


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## LLM Ann Arbor (Sep 18, 2006)

Where are you guys getting this info. 

He pays you with a check. You give him a receipt. He claims the deduction of the expense on his taxes, and you claim the income on your taxes.

You want me to believe every time you guys do jobs or earn more than 700 a year from a client you have to exchange 1099's?


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## SnoFarmer (Oct 15, 2004)

Before I organized my LLC, I gave out my SS for a 1099 twice to the business accountant.
May be I've been lucky.... I still have them for customers.


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## SnoFarmer (Oct 15, 2004)

LLM Ann Arbor;328422 said:


> Where are you guys getting this info.
> 
> He pays you with a check. You give him a receipt. He claims the deduction of the expense on his taxes, and you claim the income on your taxes.
> 
> You want me to believe every time you guys do jobs or earn more than 700 a year from a client you have to exchange 1099's?


LLM wrap your brain around this one!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Examples of uses of Form 1099
A notable use of Form 1099 is to report amounts paid to independent contractors (in IRS terminology, such payments are nonemployee compensation). The ubiquity of the form has also led to use of the phrase "1099" to refer to contractors themselves. U.S. tax law requires businesses to submit a Form 1099 for every contractor paid more than $600 for services during a year. This requirement usually does not apply to corporations receiving payments.

Many businesses and organizations must file thousands of 1099s per year. Thus, payers who file 250 or more Form 1099 reports are required to file all of them on either magnetic tape or floppy disk.

Form 1099 is also used to report interest (1099-INT), dividends (1099-DIV), sales proceeds (1099-B) and some kinds of miscellaneous income (1099-MISC). Blank Form 1099s and the related instructions to the forms can be downloaded from the IRS website (http://www.irs.ustreas.gov/formspubs/lists/0,,id=97817,00.html).

Payees use the information provided on the 1099 forms to help them complete their own tax returns. In order to save paper, payers can give payees one single Combined Form 1099 that lists all of their 1099 transactions for the entire year. Taxpayers are usually not required to attach Form 1099s to their own Federal income tax returns unless the Form 1099 includes a report for Federal income tax withheld by the payer from the related payments.

[edit] Variants for Form 1099


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## LLM Ann Arbor (Sep 18, 2006)

I cant properly explain it SF, but a sub contractor is performing work for someone else who has sold the work. The original contractor issues the sub a 1099 and forwards it to the IRS.

An independent contractor is very similar but cant be told when to report to perform the job etc etc etc....Independant contractors are issued a 1099 and its forwarded to the irs by the perosn they work for.

A contractor or busines "Owner" issues a receipt for the money collected so the person the work was done for can claim it as an expense for a rental property if thats what it is.

The Contractor/Businessman then takes the cash, or check he is issued and claims that income on his taxes. The IRS prefers contractors are paid by check written to them, or the business name for documentation after the fact.

I think you guys are confused about 1099's. 


Now realize. I am certainly not a tax expert but ive been in business in one fashion or another for a total of 8 years over time and the only 1099 I get is from the company I subcontract for.

If im wrong Ill eat crow, and learn something new, but I dont think I am.


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## LLM Ann Arbor (Sep 18, 2006)

I understand that SF, but is some dude that rents out his house or whatever because he moved in with his girlfriend or whatever , a legitimate business?


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## SnoFarmer (Oct 15, 2004)

Yes, he could own a dozen rentals, who knows?..

But he is trying to run it as a legitimate business.
No matter where he is sacking up at.


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## LLM Ann Arbor (Sep 18, 2006)

I have to say too that this year was the first year I did work for a business. Other than that its all non business people.

Last year I subcontracted and was issued a 1099 for that income which I filed on my taxes, but Im curious to see if this company I cut grass for this year issues me a 1099.

What if they dont?


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## john boardman (Sep 25, 2006)

It all depends upon how your business is structured. If you work alone with no employees and the customers you have write a check to you personally (your name) you are probably working off your SS# so you'd have to give them your SS# as you are not at least an LLC and have not applied for a federal EIN. Here in Iowa as a sole prop. w/o employees or workers comp. you would not be required to have a EIN.


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## LLM Ann Arbor (Sep 18, 2006)

john boardman;328431 said:


> It all depends upon how your business is structured. If you work alone with no employees and the customers you have write a check to you personally (your name) you are probably working off your SS# so you'd have to give them your SS# as you are not at least an LLC and have not applied for a federal EIN. Here in Iowa as a sole prop. w/o employees or workers comp. you would not be required to have a EIN.


Well thats me. Sole proprietor, no employees.

Im considering an LLc but I carry a ton of insurance and I dont own this house. The mortgage company does and I have few assets. Very few. I may not go LLC untill I feel the need to.

And all my customers write the check out to my business name for which I have a DBA. Those checks are deposited in my business account at the bank.


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## SnoFarmer (Oct 15, 2004)

LLM Ann Arbor;328427 said:


> If im wrong Ill eat crow, and learn something new, but I dont think I am.


Will that be white wine with your bird this evening, Sir?


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## LLM Ann Arbor (Sep 18, 2006)

christ. Now you guys got me all confused about taxes. I need to talk to my accountant but theres never been any mention I am doing anything wrong now....(having filed business income last fall for 4 months) and or for the six years I did this the same way in the early ninties.


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## LLM Ann Arbor (Sep 18, 2006)

SnoFarmer;328433 said:


> Will that be white wine with your bird this evening, Sir?


So let me ask you.

I do 600 dollars worth of work for a business that hired me to say cut grass all year. They have to issue me a 1099? Even after I have acccounted the income in my books to file on my taxes, and deposited their check in my business account?

.Keep in mind Im a sole proprietor and everything gets funneled onto a 1040.


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## bterry (Oct 30, 2003)

LLM Ann Arbor;328436 said:


> ...They have to issue me a 1099?...


No, but they could. It is up to them. SnoFarmer has been right on the mark on this whole thing. I provide it to anybody that asks for it - as it is required by the tax laws. I suggest you provide the number. The only reasons I can think of not providing it is to try to hide income, or attempt to prevent identity theft - neither of which will fly with the IRS.


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## Mick (May 19, 2001)

It might help if you think of it this way: The 1099 is not for your benefit, but for the benefit of the taxpayer who is PAYING the money shown on the 1099. That person (or business) needs the 1099 as record of payments made to another person or business.


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## daninline (Nov 1, 2004)

no fighting now you 2.

I have never heard of a EIN.
I do have a Fed Tax ID.

I better talk to my tax guy he has never said anything to me in the past but I think I will be changing over to a LLC this winter.

The reason I don't want to give him my SS is I just don't trust him with it.


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## SnoFarmer (Oct 15, 2004)

If you don't trust him then I would not give it out either..

Do you think you will make over $600 plowing it?
Explain that to him and maybe you will not need to fill it out.
Once you have reached the $600 mark hopefully you have your business registered and have your #'s to give him instead of your s.s...


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## terrapro (Oct 21, 2006)

hey daninline just do your own research, learn for yourself. definately dont give him your SS# get yourself an EIN# give it to him and be done with it. it is a very common business practice, hes just trying to do it the right way. heres the link to the IRS webpage for the EIN#. i didnt use this method but i know people who have and they said you get it right away. good luck stay safe do it right

http://www.irs.gov/businesses/small/article/0,,id=102767,00.html


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## flykelley (Dec 29, 2003)

terrapro;328562 said:


> hey daninline just do your own research, learn for yourself. definately dont give him your SS# get yourself an EIN# give it to him and be done with it. it is a very common business practice, hes just trying to do it the right way. heres the link to the IRS webpage for the EIN#. i didnt use this method but i know people who have and they said you get it right away. good luck stay safe do it right
> 
> http://www.irs.gov/businesses/small/article/0,,id=102767,00.html


I did mine online and got my EIN as soon as I was done filling out the forms.

Regards Mike


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## Mick (May 19, 2001)

Answer to questions about what is a 1099-MISC and what it is for. Also, to answer what is an Independent Contractor:

http://www.irs.gov/faqs/faq12-2.html


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## LLM Ann Arbor (Sep 18, 2006)

Hmmm. Good info all.

Like I said, this is my first year conducting business with...a business entity.

Its good to know and thanks for the education. Currently I just report it all to a schedule C and then to the 1040.

But if someone asks me for the number in the future Ill be prepared to make their recordkeeping complete.

Thanks guys.


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## Runner (Jul 21, 2000)

Mick, The 1099 MISC IS the main type of 1099 that is made out for miscellaneous payouts. Services, regardless of what - as long as they are legitimate business expenses, rents (if business related), and some other things are included in this. Even winnings, for instance, such as lotteries, race winnings, and even casinos use these. These are just a few examples. 
As far as us and the 1099s, businesses that we work for are REQUIRED to issue them for any total income paid out over $600. Anything under that,...is an option. For sole proprietorships, a SS# suffices. However, it is advisable for contractors to have a TIN or EIN. 
LLM, To answer a few of your questions...You asked that if you were paid, and you recorded and deposited all your money into your account (whether it be your business account, or personal - makes no difference...it is still income), would they still have to file and send you a 1099......The answer is yes. You had mentioned that it all gets "funneled" into a 1040, anyway. The 1040 has nothing to do with the 1099 (directly). The 1040 is YOUR filing documentation (even though you'll be sending a copy of your 1099 with your packet (unless filing online - then just a file number goes on your filing report). You would also use a 1040 also if you received a W-2 (hourly employee). If you have subcontractors working under you, you are able to claim all expenses you pay out to them...If they exceed $600, then you are required to 1099 each one of them...any less,...it's an option.
Now as far as the guy who has the rental(s) and wants the SS# of someone. The most prudent advice was given - that was for the contractor to get an EIN. However, if you didn't...I would wait to see how much you push for the guy, first. He can write the cost off, regardless. If it does exceed the $600, then you can give him the number - but at a later date. As long as he has it filed (to you) by the deadline (1/31 if filed by mail). I hope this helps.


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## hickslawns (Dec 18, 2004)

The EIN may also be referred to as the FEIN. Federal employer identification number. You said you have a federal number, which is probably the # being referred to. This would suffice. Good luck, and study up or call an accountant.


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## daninline (Nov 1, 2004)

I must that all of you for the advice and great info.
I must say this is a great place to work with each other to help solve problems or to just get advice.

Everyone here is what makes this site so great!

Now game on and lets see some snow fly


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