My company recently provided services to a customer on an insurance job. We cleaned up after a fire and fixed their house and the insurance company was to send a check to the customer with their and our name on it. To have the payment processed we had to provide out FEIN, and their paperwork shows that they will be sending us a 1099 for 2018 taxes. No other insurance agency has requested this information.
Is this normal?=========>>>they, payers, usually file Form 1099-MISC for each person/biz to whom they have paid during the year at least $600 in services performed by someone who is not their employee;and you are a self employer not their, the ins co, regular W2 employee.so your customer also needs to issue you a 1099 since as said you are not his/her reg W2 employee.
We will already be reporting the income, so why might they be sending it?=========>>as mentioned previously, The 1099 form is a series of documents the IRS refers to as "information returns,nothing more than this.
you as an independent contractor not as a reg W2 employee needs to 1099 to report your self employer income on your return as you usually do; aslongas youare a reg W2 employee earning a salary or wage, your employer reports your annual earnings at year-end on Form W-2. However, since you are an independent contractor or self-employed you should receive a Form 1099-MISC from each business client that pays you at least $600 during the tax year. The income you receive from each job you take should be reported to you on Form 1099-MISC. When you prepare your tax return, the IRS requires you to report all of this income and pay income tax on it. Your are still required to report all of your income even if you do not receive a 1099-MISC. |