IOFM Members rely on “Ask the Expert” whenever they’re stumped. IOFM's tax experts are standing by, ready to answer your 1099 compliance questions. And a panel of more than 100 AP practice leaders are also on call for your next best practice question.

Reporting Garnishments for Independent Contractors on 1099 NEC

January 28, 2025

Share

Q. When we are presented with paperwork that we need to withhold a garnishment or child support from an independent contractor, do we show the withheld amounts on their 1099 as payments? I assume the payments still need to be reported as taxable income to the independent contractor. Is that correct? And is it just listed as part of their regular payment regardless of if NEC, Rent, Medical or etc.? A. (Answered by IOFM's third-party tax expert) Correct, the full amount of contract labor is…

Naturally, this forum doesn’t allow the kind of full information exchange necessary for the Institute of Finance & Management (IOFM) to provide legal advice and the Expert is not a tax attorney in any event. Please understand that the nature of our responses are limited by these constraints as well as the site’s Terms of Use. If you have further questions or suggestions about how we can improve IOFM, please let us know.

Ask The Expert is a member resource of IOFM and all advice provided is subject to site’s Terms of Use.

What are you waiting for?

1

Become a Member

2

3

Attend an Event

Subscribe to our Monthly Insider

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500

Accounts Payable & Procure-to-Pay ›

Accounts Receivable & Order-to-Cash ›