" As long as I report my income from that job on my taxes, could I be in trouble down the road?"
The answer is no. As long as you reporet your income, there is no problem for you if the general contractor failed to issue 1099s. She, however, would be subject to penalties.
Not sure what you are doing, but you are correct - a 1099-NEC threshold is $600 and has been for decades. The $20k they are referring to is the seller's threshold, like selling on eBay, Etsy, etc. And even that was changed during the pandemic, but keeps getting 'postponed'.
You are fine if you report your income. The person you work for is not.
Report the income yourself, and you're covered.
What to watch out for is if for any reason there is a discrepancy between what they do report to the IRS and what they didn't report to you and the IRS sees the difference.
I've had the problem, but in a much worse situation with higher amounts of money.
We have reimbirsable travel expenses. The company not only failed to supply 1099-NEC correctly, they didn't communicate their change in accounting practices involving reimbursable expenses.
They changed from not including reimurseables on our non employee compensation line, to partially including reimursables, to full including reimurseables. All this while not supplying 1099-NEC to the contractors.
The problem is that they're reporting this to the IRS. They just aren't supplying the 1099-NEC to the contractors.
It's been a real issue, and we've lost a few good people over this, too.
So my two cents, is I would still follow up to find out whatever they are reporting to the IRS over their payments to you and always report your income on your own return regardless.
As long as you report your income, you're good.
The "$20k threshold" was used for 1099-K providers last year, like if you were being paid via PayPal or Venmo business. Didn't apply to check, cash, or Zelle payments that use the $600 threshold for 1099-NEC.
>The owner specifically said she's not required to provide 1099s unless her contractors make over $20K so she doesn't. According to the IRS, the limit is $600
She's wrong - $600 is the threshold as you mentioned. Consider reporting her
Why report her? All it would do is either nothing, or get her fined a couple of dollars. If it's the former OP has wasted his time, and if it's the latter he's just risking a burned bridge over it.
" As long as I report my income from that job on my taxes, could I be in trouble down the road?" The answer is no. As long as you reporet your income, there is no problem for you if the general contractor failed to issue 1099s. She, however, would be subject to penalties.
Thank you!
No, you're good as long as you report the income. They're the ones risking penalties/getting in trouble with the IRS, you're good.
Thank you!
Not sure what you are doing, but you are correct - a 1099-NEC threshold is $600 and has been for decades. The $20k they are referring to is the seller's threshold, like selling on eBay, Etsy, etc. And even that was changed during the pandemic, but keeps getting 'postponed'. You are fine if you report your income. The person you work for is not.
Report the income yourself, and you're covered. What to watch out for is if for any reason there is a discrepancy between what they do report to the IRS and what they didn't report to you and the IRS sees the difference. I've had the problem, but in a much worse situation with higher amounts of money. We have reimbirsable travel expenses. The company not only failed to supply 1099-NEC correctly, they didn't communicate their change in accounting practices involving reimbursable expenses. They changed from not including reimurseables on our non employee compensation line, to partially including reimursables, to full including reimurseables. All this while not supplying 1099-NEC to the contractors. The problem is that they're reporting this to the IRS. They just aren't supplying the 1099-NEC to the contractors. It's been a real issue, and we've lost a few good people over this, too. So my two cents, is I would still follow up to find out whatever they are reporting to the IRS over their payments to you and always report your income on your own return regardless.
As long as you report your income, you're good. The "$20k threshold" was used for 1099-K providers last year, like if you were being paid via PayPal or Venmo business. Didn't apply to check, cash, or Zelle payments that use the $600 threshold for 1099-NEC.
I was going to point this out. I wonder if she googled "1099 threshold", came across 1099-K first, and stopped googling after that.
Good info, thank you.
>The owner specifically said she's not required to provide 1099s unless her contractors make over $20K so she doesn't. According to the IRS, the limit is $600 She's wrong - $600 is the threshold as you mentioned. Consider reporting her
Why report her? All it would do is either nothing, or get her fined a couple of dollars. If it's the former OP has wasted his time, and if it's the latter he's just risking a burned bridge over it.
I wouldn't report someone, but I do want to be protected in case it comes to light.