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  1. #1
    Join Date
    Feb. 10, 2012
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    170

    Lightbulb Important $ info for BNTs & pony moms

    A 1099-MISC is a type of tax form. It is used to report miscellaneous income, such as income earned as a non-employee, as well as fees, commissions, rents, or royalties paid during the last tax year. Payments for prizes, awards, legal services, and other non-employee activities may be reported on this form as well.

    If a business pays you 600 US Dollars (USD) or more as a non-employee, it is legally required to report it to the Internal Revenue Service (IRS), using a 1099-MISC form. For royalty income, a 1099-MISC must be generated for $10 USD or more in royalties. As the payee, you'll receive your own copy of the form. Once you receive it, you should check it carefully for errors and keep it in a safe place. You'll need to use it to report this income on your tax return.
    Often, individuals think of non-employee income as extra money. This is particularly true if it amounts to less than $1000 USD. It is important to realize, however, that the IRS does not share this view and you are required to report all of your income, even when the amount you received was not enough to require the generation of a 1099-MISC. Furthermore, you may not choose to omit income from a particular source; you must include it all.
    Any business that has paid you $600 USD or more as a non-employee, or at least $10 USD in royalties, must provide you with a 1099-MISC form by January 31st of the year following payment. If you are expecting a 1099-MISC and have not received it by January 31st, contact the organization that pays you and request a copy. You may also contact the IRS to request a copy. Keep in mind that you will need to verify your identity before the IRS will provide you with a copy of the form.
    Sometimes, a 1099-MISC form will arrive with errors on it. If this happens to you, contact the paying organization for an amended copy. Dont wait too long to request your new 1099-MISC, as you want to ensure you receive it early enough to file your tax return on time. Though the paying company is required to send the corrected form to the IRS, it is wise to send your own copy as well. This simply protects you from unnecessary hassle caused by discrepancies in the amounts reported.
    This form is required to be filed not just by companies but also individuals who have paid commissions, training fees, show & transport fees, board, etc. Most people don't bother ; many don't even know its required, but with costs mounting daily, it's a form everyone should become familiar with.
    PS. You don't have to have the tax ID# of the person/ barn you are reporting although they should be willing to share. Just be sure the name & address are correct and enter the financial info. Send a copy to the payee. The IRS will do the rest.
    Always check with your tax preparer to make sure you've done it correctly.


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  2. #2
    Join Date
    Feb. 1, 2001
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    Finally...back in civilization, more or less
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    11,480

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    My CPA has pointed out the following from the form: (This form is for) Trade or business reporting only. Report on Form1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. Youare engaged in a trade or business if you operate for gain or profit. However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements. Other organizations subject to these reporting requirements include trusts of qualified pension orprofit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), farmers’ cooperatives thatare exempt from tax under section 521, and widely held fixed investment trusts. Payments by federal, state, or local government agencies are also reportable.
    **********
    We move pretty fast for some rabid garden snails.
    -PaulaEdwina



  3. #3
    Join Date
    Oct. 6, 2002
    Location
    Philadelphia PA
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    15,983

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    Where did this thread come from, out of the blue. And what does it have to do with pony moms or BNTs?!
    ~Veronica
    "The Son Dee Times" "Sustained" "Somerset" "Franklin Square"
    http://photobucket.com/albums/y192/vxf111/



  4. #4
    Join Date
    Aug. 31, 2011
    Location
    southeast Georgia
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    3,060

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    So we do or do not use this form to report prize money won?
    I heard a neigh. Oh, such a brisk and melodious neigh as that was! My very heart leaped with delight at the sound. --Nathaniel Hawthorne



  5. #5
    Join Date
    Jun. 7, 2006
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    8,660

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    Quote Originally Posted by vxf111 View Post
    Where did this thread come from, out of the blue. And what does it have to do with pony moms or BNTs?!
    It has to do with the form you hand the person who is representing you in a horse transaction so they can report the commission they are getting more accurately to the IRS.



    2 members found this post helpful.

  6. #6
    Join Date
    Oct. 6, 2002
    Location
    Philadelphia PA
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    Quote Originally Posted by meupatdoes View Post
    It has to do with the form you hand the person who is representing you in a horse transaction so they can report the commission they are getting more accurately to the IRS.

    Haha. Now I get it. But then they might accidentally reveal a double commission or other no nos to the unsuspecting pony mom!!
    ~Veronica
    "The Son Dee Times" "Sustained" "Somerset" "Franklin Square"
    http://photobucket.com/albums/y192/vxf111/



  7. #7
    Join Date
    Feb. 10, 2012
    Posts
    170

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    Quote Originally Posted by vxf111 View Post
    Haha. Now I get it. But then they might accidentally reveal a double commission or other no nos to the unsuspecting pony mom!!
    The pony mom (who paid the commission) gives the form to the trainer (who needs to report and pay tax on commission). If the trainer double dipped, pony mom would never know unless told by another party. Just keeping things aboveboard.lol



  8. #8
    Join Date
    Oct. 6, 2002
    Location
    Philadelphia PA
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    Quote Originally Posted by Purepony View Post
    The pony mom (who paid the commission) gives the form to the trainer (who needs to report and pay tax on commission). If the trainer double dipped, pony mom would never know unless told by another party. Just keeping things aboveboard.lol
    Well, if the pony mom reported $1000 commission paid and the trainer reported $10,000.... I would think there might be an audit resulting in pony mom finding out
    ~Veronica
    "The Son Dee Times" "Sustained" "Somerset" "Franklin Square"
    http://photobucket.com/albums/y192/vxf111/



  9. #9
    Join Date
    Jun. 20, 2008
    Posts
    4,121

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    It was my understanding that the $600 of business and issuance of a 1099 form had to do w/ some form of funding for Obamacare but realized it was going to create a huge onslot of paperwork for the IRS (until the 16,500 agents were hired). It also included 1099'ing your blacksmith, feed supplier, gas station, hardware store. I'm not sure if it's being instituted at this time or not; before anyone issues anyone a 1099 check w/your CPA



  10. #10
    Join Date
    Mar. 5, 2007
    Posts
    1,704

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    Quote Originally Posted by gottagrey View Post
    It was my understanding that the $600 of business and issuance of a 1099 form had to do w/ some form of funding for Obamacare but realized it was going to create a huge onslot of paperwork for the IRS (until the 16,500 agents were hired). It also included 1099'ing your blacksmith, feed supplier, gas station, hardware store. I'm not sure if it's being instituted at this time or not; before anyone issues anyone a 1099 check w/your CPA
    Nothing to do with Obamacare.
    Rules have been in effect for several years.
    Everything to do with the government making sure all income is reported and tax is paid.
    The horse industry is notorious for not reporting fees or sales commissions.



  11. #11

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    no we got the notice for 1099K's for all credit card transactions we take in.
    starting jan 1 2013
    yay.
    Production Acres,Pro A Welsh Cobs
    I am one of the last 210,000 remaining full time farmers in America.We feed the others.



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