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1099 Forms?
I belong to a nonprofit organization. We hold a yearly three day convention. Our convention provides classes for the attendees. In the past The teacher would collect the fee for the materials used in the class.
This year the decision was made to require that the fees for the materials for the classes will be paid at time of registration, then pay the teacher in one check their class payment and the cost of the materials used.
This will probably result in many teachers recieving a check greater than $600.00. As a result I understand that we will have to provide a 1099 form. My question is.. We have to include the fees for the materials used and then the teacher will take care of deducting the cost of the materials used on her 1040 at the end of the year?
Yes the teacher would be providing the class materials.
2 Answers
- Bostonian In MOLv 71 decade agoFavorite Answer
The Forms 1099 must reflect the total amount of money paid to the teachers. It will be up to them to account for any expenses that they incurred for class materials, travel, lodging, meals, etc. out of the gross proceeds paid to them.
- 1 decade ago
Did the teachers provide the materials? and is that why the check would include the fees and materials (reimbursed)?
If so - then yes report the whole amount (if $600 or more) and they should know to deduct the materials cost when preparing their tax return.
Source(s): Tax Accountant
