I didn’t realize I had to do a 1099-Misc for someone I subbed last year, but it isn’t as hard as I thought.

You have to have real paper forms from the IRS (or your accountant, or the business supply store) because they are red. These are the ones you send to the IRS. The black copies go to the Vendor.

Quickbooks can print them out if you have it set up properly. I had to mark this vendor as a 1099 vendor and then in Preferences/Tax I had to associate the “Nonemployee compensation” box with the account I used to pay the vendor from – in my case “Subcontract: Programming”.

You also need the vendors tax-id. That could be a SS# or an EIN. If you want to be official, you can have them fill out a W-9 that you can download from the www.irs.gov website and give that to you.

Don’t forget that you need a red 1096 as well. It is basically the “cover sheet” for the 1099’s that you submit to the IRS.

Remember – I am not an accountant, just another business owner. This is only basic heads up info, but check with your accountant first!!

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