What is a 1099 and why are they important?

At year end, all U.S. businesses and organization are required to report income generated by another party that meets the below criteria.

1. 1. Is business related (i.e. hiring a freelancer to build a personal website does not qualify)

   2. Exceeds $600 total for the year

Property managers and Associations need to report services paid to self-employed contractors/freelancers. Additionally, property managers will also need to report rental income incurred by owners.

These records are all filed through IRS 1099 forms. See more detail on the IRS website.

https://www.irs.gov/instructions/i1099mec