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1099 reporting of gift cards to contractors

April 25, 2021
March 28, 2023

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Q. If we gave $25 gift cards to contractors that would not total over $600 in the year, do we still need to send a 1099 since ALL gift cards are taxable income? A. (Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting.) The gift card amounts are included when testing to see whether the $600 threshold, for the calendar year, has been met. …

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