RonBoyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Health care law's massive, hidden tax change
Yeah, as if you didn't have enough to do:
Schedule C, for instance, should now be even more fun. $600 in a 12-month period... that's everybody you buy from.
Of course, it all makes sense:
Yeah, as if you didn't have enough to do:
Section 9006 of the health care bill -- just a few lines buried in the 2,409-page document -- mandates that beginning in 2012 all companies will have to issue 1099 tax forms not just to contract workers but to any individual or corporation from which they buy more than $600 in goods or services in a tax year.
... under the new rules, if a freelance designer buys a new iMac from the Apple Store, they'll have to send Apple a 1099.
Schedule C, for instance, should now be even more fun. $600 in a 12-month period... that's everybody you buy from.
Of course, it all makes sense:
Why did these tax code revisions get included in a health-care reform bill? Welcome to Washington. The idea seems to be that using 1099 forms to capture unreported income will generate more government revenue and help offset the cost of the health bill.