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Reporting gift cards to a non-employee without a W-9 on file
January 24, 2024
Q. My organization purchased Wells Fargo gift cards totaling $1,200. These gift cards were then hand-delivered to a non-employee. We do not have the recipient's W-9 on file.
Is this gift card amount reported on a 1099-MISC in box 3?
Is the gift card payment subject to the 24% backup withholding until the W-9 is received?
A.
(Answered by IOFM's third-party tax experts)
If given to the individual as a prize or award, the $1,200 is reported on Form 1099-MISC, Box 3 "other income". If given to…
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