swaitsandClaude Opus 5.5
249e216fc0
A vendor's 1099 decision is its own dated fact (files NEC or MISC, not reportable with its reason, or undetermined), applied by each payment's date. Payment methods are recorded; card and network payments are left out and listed; a member's check through financing counts; a bank payment with no method counts (D-40); $2,000 for payments after 2025. One worksheet for the tool, the viewer and the CPA package. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
109 lines
3.0 KiB
TOML
109 lines
3.0 KiB
TOML
id = "1099-money-from-a-payee-is-netted-only-as-a-refund"
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title = "Money received from a payee lowers its 1099 only when it refunds what was paid"
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rule = """
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A 1099 reports the payments the payer made to the payee in the calendar
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year. Money the payee gives back of a payment (a refund crediting the
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expense, or a deposit returned) reduces what was paid. Money received from
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the payee for anything else (its payment of the payer's invoice, a sale to
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it, an asset disposed of to it, a loan from it) is not a refund of a
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payment and is not netted against the payments; it is listed beside them.
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"""
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status = "CONVENTION"
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sources = [
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"26 U.S.C. §6041(a) (payments made in the course of the trade or business: docs/spec/sources/irs-1099-thresholds.md)",
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"wanderbooks P3 review R6 (2026-10-20): a sale to a payee doesn't lower its 1099",
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]
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tags = ["1099", "netting", "refund"]
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[setup]
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currency = "USD"
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fiscal_year_start = "01-01"
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basis = "cash"
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rounding = "half-away-from-zero"
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cash_accounts = ["1000"]
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[[setup.accounts]]
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code = "1000"
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name = "Bank"
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type = "asset"
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[[setup.accounts]]
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code = "1200"
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name = "Accounts Receivable"
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type = "asset"
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[[setup.accounts]]
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code = "1400"
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name = "Deposits"
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type = "asset"
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[[setup.accounts]]
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code = "2600"
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name = "Loan payable"
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type = "liability"
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[[setup.accounts]]
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code = "6000"
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name = "Contract Labor"
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type = "expense"
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[[setup.payees]]
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name = "Dana Studio"
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form = "1099-NEC"
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[[events]]
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date = "2026-02-01"
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description = "Design work"
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payee = "Dana Studio"
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lines = [
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{ account = "6000", side = "debit", amount = "3000.00" },
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{ account = "1000", side = "credit", amount = "3000.00" },
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]
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[[events]]
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date = "2026-03-01"
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description = "Dana Studio pays the company's invoice"
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payee = "Dana Studio"
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lines = [
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{ account = "1000", side = "debit", amount = "450.00" },
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{ account = "1200", side = "credit", amount = "450.00" },
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]
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[[events]]
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date = "2026-04-01"
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description = "Dana Studio lends the company money"
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payee = "Dana Studio"
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lines = [
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{ account = "1000", side = "debit", amount = "1000.00" },
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{ account = "2600", side = "credit", amount = "1000.00" },
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]
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[[events]]
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date = "2026-05-01"
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description = "Deposit for the next project"
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payee = "Dana Studio"
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lines = [
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{ account = "1400", side = "debit", amount = "500.00" },
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{ account = "1000", side = "credit", amount = "500.00" },
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]
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[[events]]
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date = "2026-06-01"
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description = "Deposit returned: the project was cancelled"
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payee = "Dana Studio"
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lines = [
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{ account = "1000", side = "debit", amount = "500.00" },
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{ account = "1400", side = "credit", amount = "500.00" },
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]
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# By hand: paid 3,000.00 + 500.00 (the deposit, paid when made) − 500.00
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# (its return, a refund) = 3,000.00: reportable. The invoice payment
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# (450.00) and the loan (1,000.00) are listed, not netted (netting them
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# would leave 1,550.00, under the threshold).
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[[expect]]
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query = "vendor_1099"
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payee = "Dana Studio"
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from = "2026-01-01"
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to = "2026-12-31"
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values = { status = "reportable", threshold = "2000.00", paid = "3000.00", excluded_card = "0.00", undetermined = "0.00", not_reportable = "0.00" }
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