Are political contributions reportable on a 1099?
Question
Are political contributions reportable on a 1099? If so, in what box and what threshold? We received a W-9 and they selected “other-political campaign”. The Exempt payee both is not selected. The name of the entity is Committee to elect so and so. Thank you!
Answer
First, review the facts and circumstances of a political contribution to see whether any service "in the course of your trade or business" has been paid for. Such services are reportable on Form 1099-MISC.
Second, even if you identify a service, if a political organization is registered as a tax-exempt entity, it is entitled to certify itself on Form W-9 as an exempt recipient, in which case the payment is not reported on Form 1099.