As a writer in the process of getting published, you may have paid more than $600 to a literary agency, editor, photographer, website designer, or book packager to work with you this past year. You can claim this amount as an expense when you file a Schedule C; it will lower how much tax you have to pay on your income.

Here is the link to Schedule C

 

If you paid more than $600 to one agency, the IRS requires you to send a 1099-MISC form to that agency.

  • Here is the link to Form 1099-MISC
  • When you open the link, scroll down until you get to Copy B, the black & white form, which can be downloaded and completed (ok to file electronically as well.) Print out Copy B.
  • Fill out your information (you are the Payer) and fill in the Recipient’s name, address and federal ID #.
  • Put the amount you paid to this business in Box 7 – Non-Employee Compensation.
  • Send a copy to the IRS by January 31stIf you run out of time to mail it in, you can file electronically.

See below for IRS mailing address, which depends on where you live.

If your legal address is located in the states below, use this IRS address:  

Department of the Treasury
Internal Revenue Service Center
Kansas City, MO 64999

Alaska, California, Colorado, District of Columbia, Hawaii, Idaho, Illinois, Indiana,
Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska,
Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota,
Tennessee, Utah, Washington, Wisconsin, Wyoming

If your legal address is located in the states below, use this IRS address: 

Department of the Treasury 
Internal Revenue Service Center
Austin, TX 73301

Alabama, Arizona, Arkansas, Connecticut, Delaware, Florida, Georgia,
Kentucky, Louisiana, Maine, Massachusetts, Mississippi, New Hampshire,
New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania,
Rhode Island, Texas, Vermont, Virginia, West Virginia

While you do not have to send a 1099 to a Corporation, you are legally required to send one to the IRS for a Limited Liability Corporation., or LLC. If you don’t know which your agency is, do ask! (Also they should provide you with their W-9 which will have their legal name, address and federal ID #.)

Here’s the word from the (our) accountant:

Individuals have to file 1099’s if they are claiming what they pay as a business expense (if they report using Schedule C). If they are not running a business, there is no requirement. If they do not have an EIN they use their social security number to file.

It is not the service provider’s responsibility to make them file a 1099 but you should make them aware of the income you are reporting. They can get fined for not filing in a timely fashion.

What you do is up to you, of course, but it is important to be aware what it is legally required.

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