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riches139
01-30-2005, 03:01 PM
Just received a 1099 from one of my accounts.

Box #7 (Nonemployee Compensation)
1524.17

Actual billing is 1431.00 plus 93.17 sales tax.

Shouldn't box 7 be 1431.00?

I am not being compensated 1524.17, 93.17 is sales tax.

Thanks

Carolina Cutter
01-30-2005, 03:07 PM
I recieve one of those from one of my customers every year. I do not charge sales ax because all I provide them is service.

As I understand it in NC any payments over $600 requires a 1099. The filer of the 1099 is required to report what they paid you during the year so I guess that would include the tax.

If you pay quarterly taxes you should have already paid the tax on the money....fowarded the tax to the state and should be able to list it as taxes already paid.

Just my $.02 but if I were you I would consult a tax person on this one.

riches139
01-30-2005, 03:20 PM
Was going to call accountant monday and check on it.

In ohio we have to charge sales tax on services.

In my case it is payed monthly.

SodKing
01-30-2005, 03:39 PM
Are you incorporated?

riches139
01-30-2005, 06:15 PM
No, sole proprietor.