Garnishments with 1099 contractors: One scenario: alimony garnishment—set up two vendors (husband/"worker" and wife). Do they both get 1099s or just him for the full amount? And what if it's child support, or a lien on property?


Please see TAPN's article 1099: Assignment of Income and Middleman Regulations, in the Compliance section under 1099 Reporting. This article is based on information provided by Marianne Couch, Esq. Specifically, see the last section, "Liens, Levies, and Garnishments." Generally, the 1099 (just one) still goes to the vendor, who is the "beneficial owner" of the income. However, if part of the payment goes to an attorney, that must also be reported. See IRS Instructions for Form 1099-MISC and search "attorney" for guideline on reporting payments to attorneys.


This question was answered by COKALA Tax Information Reporting Solutions, LLC, a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting. You can learn more about them at

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