Each year, businesses are required to send 1099-misc for subcontractors that work for them. The minimum dollar amount that needs to be reported on a 1099-misc box 7 is $600.00. It has been that way for years. It’s pretty straightforward. If your subcontractor made over $600.00, you need to complete and print 1099-misc form, mail to your subcontractor and submit to the federal, state, and local (if applicable). There is a 1099-misc instruction booklet that explains how to fill out these forms. The IRS.gov website also gives you instructions about how to use these forms. It also mentions this on the back of the 1099-misc recipient form but not in great detail.
This year, however, the 1099-misc recipient copy said, “$400 minimum”. Odd, right? I didn’t hear anything about a change in the minimum in box 7.
When I saw this, I wanted to confirm that nothing had changed. So, to verify, I decide to search 1099-misc on the IRS website. Then, I checked the PDF version of the instructions booklet again and sure enough, both said box 7 must report anyone how made $600 or more.
The fact that I found it two different places on the IRS website indicated to me that the recipient form must have been a typo error.
What you can learn from my experience?
If you wish to do your own 1099-misc forms, be sure to check a few different places to make sure the information is correct before making these and any forms. This way, you will confirm that you are doing the correct tasks.