# im a sub receiving 1099's from the GC's im confused and need help.



## kc brick layer (Jul 20, 2006)

im new in business this last year and i work as a subcontractor to many gc's. i have received a few 1099's from some of these gc's. i thought since i give them a w-9 that i shouldnt get 1099's. what am i soposed to do with the 1099's?


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## brzelt (Jun 10, 2006)

It just proves that they paid you and that money should show as a deposit
for your business somewhere in your records.
No big deal as they paid and you deposited...right? All the taxes are figured
in the end anyway. Or did they withhold taxes?


W-9 has only to do with the gc's or anyone you have been working for.


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## precisionbuild (Nov 17, 2008)

Take them to your accountant to do your taxes with them, or use them to do your own taxes.

A W-9 is filled out so you can be 1099'ed.


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## Brock (Dec 16, 2007)

and the other copies go straight to the IRS so make sure you wait and get"all" of the 1099's before you file your taxes. i don't want you to get locked up.




.


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## SLSTech (Sep 13, 2008)

Brock said:


> and the other copies go straight to the IRS so make sure you wait and get"all" of the 1099's before you file your taxes. i don't want you to get locked up.
> .


In addition to what Brock said & some of the others above...

Any amount paid out over $600 by a GC to you requires a 1099

They have until Jan 31st to get them in mail

I would wait at least a week (Feb 6th or 7th) before going to your tax guy, unless you are positive you got them all


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## Bender (Aug 23, 2008)

My quickbooks is telling me the threshold for 1099's is higher this year.
EDIT: I'm not convinced this is true


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## SLSTech (Sep 13, 2008)

IRS site still shows $600 http://www.irs.gov/efile/article/0,,id=98114,00.html


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## Bender (Aug 23, 2008)

Dang, and I had 10,000 employees making $601.00 last year:blink:
:jester:


Now I wonder wtf is wrong in my books:sad:


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## thom (Nov 3, 2006)

Incorporate and they won't 1099 you


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## D.A.S.Anthony (Dec 3, 2008)

Ask for cash! SHHHHHHH!!!!!!!


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## SLSTech (Sep 13, 2008)

D.A.S.Anthony said:


> Ask for cash! SHHHHHHH!!!!!!!


SHHHHHHH!!!!! Simple Jack may be around - don't get him started again


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## BattleRidge (Feb 9, 2008)

When I started as a sub I worked for probably 15 contractors and I only got like 3 1099s. Is that a bad thing? I claimed everything though.


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## dubz (Sep 8, 2008)

BattleRidge said:


> When I started as a sub I worked for probably 15 contractors and I only got like 3 1099s. Is that a bad thing? I claimed everything though.


It's nothing to you as a sub. The contractor can be fined 60$ each for not sending them out, (according to my tax guy years ago).


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## Bodger (Oct 23, 2008)

I caught an audit three years ago for a previous tax year. I had not sent 1099's to all of the subs, I was lazy about getting that done. I did some, but not all. 
I had invoice receipts and cancelled checks proving that I had paid these guys, but that wasn't enough for the IRS auditor. He threatened to disallow those payments and count them as income for me because I had not sent in the 1099's on all the subs I paid that weren't incorporated.

In the end, I paid penalties for not sending the forms, and he allowed the sub costs not to be counted as income. I got dinged $3500 in that audit on other matters. 

I don't know if his threats were legit, but it was a while before I took a solid crap.
Now, religiously I send them thangs.


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## Aframe (Mar 24, 2008)

BattleRidge said:


> When I started as a sub I worked for probably 15 contractors and I only got like 3 1099s. Is that a bad thing? I claimed everything though.



If you claimed all the income you are all set.


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## Buck25 (Jan 30, 2009)

I don't get the 1099 thing; just found out about it a few days ago. I have a cancelled check and an invoice from the sub, so why the hell do I need to essentially keep the subs' books for the IRS?


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## precisionbuild (Nov 17, 2008)

Buck25 said:


> I don't get the 1099 thing; just found out about it a few days ago. I have a cancelled check and an invoice from the sub, so why the hell do I need to essentially keep the subs' books for the IRS?



You're kidding, right? :blink:You're not keeping his books, you are keeping yours. And you are giving the IRS a way to collect their money.

The reason you send the sub a copy is so he can compare it to his records so that you are not telling the IRS you paid him more than you did.


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## Buck25 (Jan 30, 2009)

I understand all that but then why don't I need to 1099 Home Depot? I have a receipt the same way I have a "receipt" from my sub?

I'm just trying to figure out the logic of the system. The sub should be keeping his books and entering that payment as income; so then it's my responsibility to keep the sub honest by reporting his income to the IRS. I just don't get the difference between writing a check to a sub or a vendor or the insurance company.


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## precisionbuild (Nov 17, 2008)

> why don't I need to 1099 Home Depot?


They are incorporated.


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## Tom Struble (Mar 2, 2007)

isnt that part of being a GC?


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