Payment to contractor

[PixelRogue]

What is the name of your state (only U.S. law)? PA

Sizable check made to a contractor cleared in Q3, 2014. Work, however, took so long and did not complete until apx. Q2, 2015.

Is it possible to issue a 1099 for the 2015 tax year (year in which work was completed), vs. 2014 when the check was cashed?

 

[justalayman]

Who are you talking about issuing a 1099?


But if you are an entity that issues a 1099 it is issued for the year payment was made.

 

[PixelRogue]

Thank you...

I might be using the wrong form number. Essentially paid more than $600.00 to a contractor...and would require a form. We missed the window of 2014 and were thinking 2015 as that's when the work was being performed. Thank you.

 

[LdiJ]

I might be using the wrong form number. Essentially paid more than $600.00 to a contractor...and would require a form. We missed the window of 2014 and were thinking 2015 as that's when the work was being performed. Thank you.

Did you deduct the expense on your 2014 tax return? If you did not, and you can legitimately classify the payment as a deposit rather than as a payment for services rendered, then you could do a 2015 1099. However, if it was a simple pay in advance situation, and you did deduct the expense on your 2014 tax return, then you are going to have to file a 2014 1099 for him...which he will not be happy about.

 

[justalayman]

Are you an individual or a business?