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Should my client still file 1099’s for contractors if they have paid them using a credit card? I know it's not required but what would be the benefit if filed anyway?

Love4god
Level 1
 
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2 Comments 2
George4Tacks
Level 15

I guess it would be like wearing a belt AND suspenders. 


Here's wishing you many Happy Returns
qbteachmt
Level 15

The concern would be that a 1099-K is triggered based on the amounts or number of payments, + yours, and the data is double-reported for these payments. I would not bother to spend the time doing the reporting that is not required, for that reason.

I had a client that would use the top and bottom halves of the one 1099-Misc page for reporting to me, and I pointed out this is double reporting. He thought it was the same as the way the W2 is laid out.

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