1. Nelson says:

    What happens if the gifted person was an intern who were not on W-2? I had an intern came from the university and there was a program through the university related institution, although the salary was paid from us to the institution and they paid the student.

  2. Nicky says:

    What if you give the gardener $25 as a gift but included in the salary check, should the $25 be included on the 1099?

    • Candace Galiffa says:

      Great question! If the gardener is working for your business as a contractor, you wouldn’t have to include the gift value on their 1099-NEC. You would just deduct the cost of the gift as a business expense.

  3. Julia says:

    If I gave a contractor a $30-50 gift card, I have to include that on their 1099-NEC right?
    But if I gave the contractor a $30-50 physical gift (a candle, mug, etc) then I don’t have to include it, correct?
    Thank you!

    • Candace Galiffa says:

      Based on the amount, in both cases it would be okay to not include the value of the gift on the 1099-NEC.

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