Question: Issuance of 1099-MISC

What does everyone recommend on issuing 1099-MISC? From a brief review of the rules it appears that I have to do a 1099 for anyone we pay more than $600 like World's Finest Chocolate, etc. What about the people that we reimburse for expenses? For example, our principal bought around $300 worth of stuff at the first of the year and the PTA reimbursed him. If it reaches the $600 threshold will it have to be reported on a 100-MISC?

Asked by tvmangum



Advice from PTO Today

Rose H writes:
Hi there!
Ran your question by our content team and here's what I learned:
It seems unlikely that that a PTO would have to provide a 1099-MISC for the circumstances you describe. Most PTOs are not employers, and they aren't paying for services performed by a non-employee.

The examples cited in your question don't qualify based on the info on this page:

In the case of World's Finest Chocolates, you are paying for goods received.

The reimbursements are things purchased for PTO business, and they are repaying the folks who did so out of pocket. So it's not recorded as income for those folks, no 1099-MISC needed.

Hope this helps!


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