1099s – League Winners
Softball teams pay fees to play in a tournament. Winners receive a payout: either a credit on their account or a check. Is the check subject to the 1099 rules if it is over $599 by the end of the year or are these check exempt? Thanks!
Terry Says
The “general rule” is that business owners must issue a Form 1099-NEC to each person to whom they have paid at least $600 in rents, services (including parts and materials), prizes and awards, or other income payments. You don’t need to issue 1099s for payment made for personal purposes.
https://www.irs.gov/forms-pubs/about-form-1099-misc
Gray area if the payor did not issue a 1099 whether you must declare the income. Likely yes — offset by expenses as a deduction. But if the payor did not issue a 1099, then how would the IRS know???
