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Form 1099

Discussion in 'Business Operations' started by riches139, Jan 30, 2005.

  1. riches139

    riches139 LawnSite Senior Member
    Messages: 369

    Just received a 1099 from one of my accounts.

    Box #7 (Nonemployee Compensation)

    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.

  2. Carolina Cutter

    Carolina Cutter LawnSite Senior Member
    Messages: 984

    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.
  3. riches139

    riches139 LawnSite Senior Member
    Messages: 369

    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.
  4. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    Are you incorporated?
  5. riches139

    riches139 LawnSite Senior Member
    Messages: 369

    No, sole proprietor.

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