[Calimus]

I'm doing a web site for a client, and am going to sub contract some of the programming work. I'll be receiving a 1099 from the client for the total amount, and then I'll pay the sub contractor out of the amount I receive. If the amount I pay the sub contractor is over $600, I'm assuming I need to 1099 him, and that would subtract from my overall income for the year? Or, if the amount I pay the sub contractor is less than $600, that would be $600 less in my income, but would be reported as income for me in the 1099 from the client?

I'll check with a tax professional of course, but I figured I would see if anybody here has dealt with a similar situation.

Thanks!

[Macola]

I hire subs all the time...you're correct in that if the amount you pay the sub is less than $600 for the tax year, then you don't need to do a 1099 for him/her.

As to your income, depends on how you keep your books. In most cases, the work you subcontracted is simply an expense to you, and the amount the client pays you is your income.