How to report vendor discounts on a 1099

March 1, 2019


Q. We're having a discussion regarding the amount to be reported on the 1099-MISC when the vendor has given us the opportunity to get a discount if we pay within 10 days of receipt of the invoice. For example, the P.O. and invoice are in the amount of $100,000.00, but we can get a 1% discount if we pay the vendor by ACH within 10 days. We make the payment for $99,000.00 in the 10-day window. We believe that we should only report the $99,000.00, but there has been some discussion as to whether…

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