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Need to file 1099-Misc?

My wife paid someone a small amount of royalties for the use of his work product. I've been looking around the web and it seems as if the IRS has made this as difficult as possible. There is a downloadable PDF, but "Copy A" is in Red and there's a warning that you can't file that because it's not scannable.

I filled out a FIRE application, but I still don't seem to be able to actually e-file anything.

Does she need to file the 1099-Misc "information return" for one payee and a payment of under $500?

Turbo Tax will do it, but only if I upgrade to a "Business" copy (instead of "Home and Business"). The cost of the upgrade is more than the tax saving from showing it as a payout. Maybe it would be simpler to just treat the payment as a gift and absorb the additional tax ourselves. [There was no contractual obligation to make this payment: my wife decided to because it was "the right thing to do".]

I don't understand the IRSians. [To the tune of "I don't understand the Parisians"]

Reply to
Barry Gold
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TurboTax Home & Business for Windows will create and file a

1099-MISC. If you are using a Mac, or otherwise can't do it with Home & Business, you can use TurboTax Quick Employer Forms online. See the TurboTax FAQ at the following link.

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Bob Sandler

Reply to
Bob Sandler

My understanding is that a 1099 is only required if payments over the entire year amount to more than $600. There are on-line services that allow you to file 1099's through them - if one is required, that might be the best option in your case.

Reply to
Stuart O. Bronstein

It sounds to me like she is not "in business" and thus is not required to file 1099s. I also think the threshold is $600.

Others can say if I am off base here.

Reply to
Taxed and Spent

She may not be "in business" (although she may very well be), but the 1099-MISC limit for royalties is $10, not $600. In similar circumstances (W-2 for a home employee), I used a paper form for the payee copies and E-filed the result, using TurboTax Home & Business. I think, also, the deadline for filing without penalty was set forward from February 28 to January 31 this year.

If she's not "in business", there's no deduction for 2018, due to the Trump tax "reform".

-- Arthur Rubin, AFSP, CRTP, Brea, CA

Reply to
Arthur Rubin

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