1099 or Paypal?

So...I provide content services for people. I have a new client that doesn't want to pay me through Paypal. She wants to mail me a check or send it electronically through the bank. She wants to put me on a 1099 form. Besides the fact that this means I have to report the income at the end of the year (which I would have done anyways), is there any reason I shouldn't do a 1099 with this person?

I don't know her from Adam, so she would have my SS# instantly. Other than taxes and personal information, I can't think of any reason I shouldn't do this. Are there other tax consequences for me? I am a sole proprietor for now.

Access to personal info is a personal question

You said you don't know her so I'm thinking she is not going to be a repeat client. Ultimately it all breaks down to a question of how you operate your business, though some questions to consider about taxes:

• How much is she sending you in total? (Under $600 = no requirement to file federal)
• What State You Live in (each has different rules & rates)
• Total Reportable Income

Do a bit of homework and estimate your total reportable income for this year and lump in what you expect to earn through the rest of the year. You can get an idea of how much you'll owe with her payment.

jakekelly said:

I don't know her from Adam, so she would have my SS# instantly.

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I would not give that info out without doing some vetting.

Get an EIN from the IRS and give it to her. They are free and you can get them for a sole-prop. You then just list it on your schedule-C when you file.

Real easy and exactly what they are meant for.

ostermeier said:

Get an EIN from the IRS and give it to her. They are free and you can get them for a sole-prop. You then just list it on your schedule-C when you file.

Real easy and exactly what they are meant for.

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Sweet. I already have an EIN from when I started years ago, as I was thinking about getting into dropshipping. I will use my EIN number.