Home Improvement Contractor - Licensed Contractors
Can one independent contractor pay another IC?
I currently work for a company that pays as Independent contractor. I have a friend of mine that helps me work and I pay her half of what I make. How would that go as far as taxes?
Public Comments
- Have her fill out a W-9. You fill out a 1099-Misc for the amount you paid her. (Be sure she *is* an IC and not an employee to you.) File the form 1099-Misc with form 1096 by due date (warning forms are free, but *not* downloadable!) This form is required if you paid her $600 or more. (Even if you pay her less than $600, she has to report 100% of it.) Then on schedule C, you subtract it.
