File a 1099 for services related to my hobby?

[musicmixing]

One of my hobbies is writing/playing music. I recently finished recording a new album, and I've handed the files over to a friend for mixing/mastering. In the past, I've had friends do this work for free, but I'm a little financially better off these days, so I want to pay my friend for his work. While I don't expect to make a net profit, I do plan to offer this album for sale.

I'm pretty sure the total cost for my friend's services will come out to be over $600. Should I ask him to fill out a W-9, and should I file a 1099 for him? If so, how do I do this? What do I do with the W-9 he gives me? What if he doesn't want to go through the trouble (hypothetical; I haven't suggested it yet)?

Note: I am self-employed, so I'm used to filling out W-9s and receiving 1099s, which is why I even realized I might need to do this. I just have no idea how it works on the other end. I looked at the requirements on irs.gov, and it didn't seem like my music situation would be an exception, but I definitely don't want to go through the trouble if I don't have to.

Thanks for any advice!

[SeattleCPA]

I would, yes... it's the law... and it'll show your activity is really a business and so be just another way that you support any deductions, etc.

BTW, the Schedule C form you'll use to report the deductions has those check boxes that you use to indicate whether you've filed 1099s for people...

[musicmixing]

Thank you, SeattleCPA! It feels weird to ask this friend to fill out a W-9, especially since I spend much more money on my music hobby than I earn back. But it sounds like I should go ahead and do it.

[SeattleCPA]

Keep in mind the possibility that while the 1099 to your friend documents income on his tax return, he also probably has expenses he can use to shelter that income. So it's not a case where if you sent him a 1099 with $1,000 on it that he has to pay taxes on the $1,000. He might have bought a $1,000 guitar (just for example) and so have no taxable income.