Alright beauty professionals, today we’re talking about arguably the sassiest of the tax forms: the 1099! You’ve probably got more than a few of these to issue this tax season, so let’s get you moving!
Who needs to receive a 1099 from me?
Anyone to whom you paid $600 or more in 2020 for services within your business - vendors, subcontractors, landlords, lawyers, etc - should receive one. If you made rent payments, one-time service fees, gave prizes or awards, and made any other payment to a company or individual exceeding $600 for any reason relating to your business, they need a 1099 from you.
If you are a booth rental or suite rental stylist, you need to issue a 1099 to the salon owner.
Who doesn’t need to receive a 1099 from me?
Recipients of personal payments don’t need a 1099. Recipients who received payments made by credit card or to a business PayPal account will not need a 1099 from you: in this case, both the credit card...