Ah, the sweet smell of tax season! Nothing quite says "joy" like a stack of forms and a looming deadline, right? If your idea of a good time involves managing 1099s, then you’re either an accountant or a masochist. For family businesses, reinvented careers, and modern entrepreneurs who'd rather spend their time making money and outsourcing tedious tasks, let's dive into some surprising news: the 1099 limit bill didn't pass.
Last year, rumors were swirling faster than Aunt Linda's infamous gossip at Thanksgiving dinner. There was talk of increasing the 1099 threshold from $600 to $1,000. For those not in the know, a 1099 form is what you issue to an unincorporated entity or person for services rendered. It's the IRS's way of making sure everyone pays their proper dues (thanks, Uncle Sam!).
The $600 limit has been around since dinosaurs roamed the earth—or at least it feels that way. Imagine our collective sigh of relief when we thought the government would give us a break and bump that number up to $1,000. Spoiler alert: they didn't.
Accounting practitioners everywhere have been buzzing about this new limit. But folks, I'm here to tell you: the law never passed. That's right, we're still stuck at $600. So if you've been happily collecting W9 forms thinking, "I'm in the clear until I hit $1,000," think again. The IRS hasn't changed their tune, and neither should you.
To avoid mid-year headaches, remember: no W9, no check. This simple rule can save you from year-end crunch times and cold sweats. Trust me, chasing down contractors for forms in December is as fun as pulling teeth with a pair of rusty pliers.
Also, here's a pro tip: if you're paying by credit card, you get a free pass! No 1099 needed. It's like finding out your favorite coffee shop is giving away free lattes—pure bliss.
Here at Calculated Moves, we’re all about making financial preparedness a breeze. We take the headache out of accounting work so you can focus on what you do best: growing your business, enjoying your life, and keeping Uncle Sam off your back. Strategic planning and financial preparedness? Check. Avoiding expensive mistakes? Double-check. Outsourcing the number-crunching? Check, check, and check.
In conclusion, don't let outdated thresholds and tax myths derail your smooth sailing. Let the pros at Calculated Moves guide you through the ebbs and flows of business. Because, honestly, you've got better things to do than worry about 1099s.
Ready to make some calculated moves? Stick around, and let's navigate these turbulent waters together!
Please follow us on Facebook and Instagram. Please make sure to check out our blog and our website link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. Email me at donna@calculatedmoves.com.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.