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Level 1
May 4, 2026
Question

how do i change my answer to Yes I issued 1099NEC to my subcontractor

  • May 4, 2026
  • 1 reply
  • 152 views
where do I put COGS section

1 reply

LenaH
Employee Tax Expert
Employee Tax Expert
May 6, 2026

To indicate that you issued 1099-NECs and enter your COGS, please follow the instructions below:

  1. Go to the Schedule C screen under Income in the Federal section.
  2. Click Review under your business.
  3. On the screen Here's your info for this work, click the pencil next to Business summary. 
  4. On the screen Your [business] info, scroll down to Payments and identification. Click Edit under Required to send a 1099
  5. On the following two screens, Indicate you did at least make one of these payments and that you sent 1099 forms. 
  6. Continue through the following Schedule C screens, until you reach the screen Add the expense categories you had.
  7. Scroll down and click Add more expense categories
  8. Search Inventory and click Add and click Continue.
  9. On the next screen, click the pencil icon next to Inventory
  10. Enter your information on the following screens. 
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