A programmer that I paid to write code for a game I created last year just asked if I should be sending him a 1099 or something similar. I hadn't thought about it.

Does anyone know if this is necessary?

And is there a difference if he was a hobbyist between jobs just trying to make some extra money rather than an established business?

And does the amount paid make any difference?

Thanks

The only thing I know is that taxes are complicated. It might be wiser to talk to an accountant. Having run a business for some years I know that tax problems don't go away if you ignore them, they just snowball.

Yes, Tomato Head. I agree. So since time is of the essence and no one responded yesterday, I did exactly that, and the accountant assured me that because I was a hobbyist with no established business, and that I hadn't made at least $600, I don't need to send a 1099 to the programmer. It is up to the programmer to claim the money on his federal and state taxes what was paid to him. If I start making enough money from the game, I should then establish myself as a sole proprietorship or LLC and apply the expenses from last year as “start-up” costs to offset earnings.