I know oDesk sends 1099s if applicable to the contract help I hire through them. But if I send more than $600 to oDesk, how do I claim that on my taxes? Am I supposed to file a 1099 for oDesk?

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Generally, you should be getting a W-9 from the individuals your are subcontracting. Then the 1099's would go to those individual. On your books/taxes you would list them as Direct Labor.

However, I have never used O'Desk, do you know who you are subcontracting? If not, perhaps O'Desk sends out the 1099's to each individual. If that is the case, you would need a W-9 from O'Desk. If they are a corporation then you are not required to send out a 1099. It would go on your books/takes as a Professional Service Fee.

Julie

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Julie | Virtual Resource Services, Inc (VRSI)
http://www.vrsioffice.com

oDesk sends them out if needed (they may not have to if they are overseas).

Also I thought the rules just changed re: that other thread about 1099s and perhaps I do have to send out a 1099 on oDesk?

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Did O'Desk give you their W-9 or at least their Tax ID?

Julie

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Julie | Virtual Resource Services, Inc (VRSI)
http://www.vrsioffice.com

I just checked the California Secretary of State and it shows Odesk as a corporation. (Formal name: Odesk Corporation)

Entity Name:ODESK CORPORATION
Entity Number:C2498116
Date Filed:01/27/2003
Status:ACTIVE
Jurisdiction:CALIFORNIAEntity
Address:901 MARSHALL ST STE 200
Entity City, State, Zip:REDWOOD CITY CA 94063
Agent for Service of Process:GARY SWART
Agent Address:901 MARSHALL ST STE 200
Agent City, State, Zip:REDWOOD CITY CA 94063

As such you would not be required to send out a 1099 to Odesk. The IRS does not require you to send 1099's to corporations. (As long as Odesk is sending 1099's to the subcontractors you are fine.)

Navigate to http://www.vrsioffice.com/forms/Inst-1099-Misc.pdf and note the highlighted sections.

I would just list it as Professional Service fee on your books / taxes

Julie

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Julie | Virtual Resource Services, Inc (VRSI)
http://www.vrsioffice.com