I have an LLC and I own a small recruiting side business. One of the people I "placed" at a company was through a friend. I paid that friend $3000 for his services or helping me find a candidate.

My question is do I need to serve him with a w9/1099 (or something like that) so that I can write of the $3000 as an expense? He doesn't have a business or anything like that, just a friend of mine that helped me out.

  • it's just an ordinary 1099. makes little difference "what" the job was. – Fattie Feb 13 '18 at 15:53
  • @Fattie there are multiple 1099 forms. In this case it'll probably be a 1099-MISC. – RonJohn Feb 13 '18 at 16:05
  • @RonJohn - fair enough, good one – Fattie Feb 13 '18 at 16:07

According to the IRS, the requirement is that all payments of $600 or more must be reported on a 1099-MISC. The relevant section is "services performed by someone who is not your employee".

Your friend's Taxpayer Identification Number (TIN) will likely be his Social Security Number but it could also be a TIN, in either case it will be the same number he uses when filing his taxes. If this was through your friends business, it would be the businesses Employer Identification Number (EIN).

Note: I'm assuming that this is the United States, as you mention a 1099. If you are located elsewhere, please revise the question.

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