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Updated about 5 years ago on . Most recent reply
1099 Misc if you pay by credit card
The instructions for 1099-MISC say this: Form 1099-K. Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. https://www.irs.gov/pub/irs-pd... Does this mean that I am not obligated to issue 1099 Misc to those I paid by Credit card? Last year I believe this is the position the accountant took but I am getting a different response now from one of his employees. I don't want to push back if I am not recalling/interperting correctly.
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#5 Tax, SDIRAs & Cost Segregation Contributor
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#5 Tax, SDIRAs & Cost Segregation Contributor
- Accountant
- Atlanta, GA
"Does this mean that I am not obligated to issue 1099 Misc to those I paid by Credit card?"
Payments made by credit/debit card and third party payment networks like PayPal, Venmo, etc are not subject to the 1099-MISC reporting requirements. Only payments made via cash, check, or e-check are.
This is because the payment networks are subject to the reporting requirements surrounding 1099-Ks.