1st*toright
DIS Veteran
- Joined
- Mar 1, 2017
You still have to report it - just on a different form.
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. See the separate Instructions for Form 1099-K.
I promise I'm not trying to internet battle! Just trying to make sure correct information is out there! In general, I would air on the side of caution and send a 1099 if you are unsure. The form is easy to fill out and barely takes any time.
Always good to make sure the info is correct- no battles on this board
You are correct that it gets reported on a different form, but that form is the responsibility of the third party processing the payment (paypal or credit card company), not the business owner making the payment (me!). So, as long as I paid my contractor using a cc or paypal, I don't have to issue a 1099, the payment processor will be responsible for filing the related 1099k.