This is the first year my small business has paid a contractor over $600. How do I do the paperwork to generate the 1099 for that contractor?

Forum|Forum|4 years ago
January 4, 2022
5 replies
69 views

I always use the TurboTax for small business option, and I know there's a question buried in there about asking if I need to generate a 1099 for a contractor because I've seen it in the past, but it didn't apply. This year it does apply, but I don't want to wait for that question to pop up when I'm actually completing our taxes. It's still going to be a while until I start on the taxes, since I don't have all my forms yet.

TurboTax Self Employed Online

DianeW777

Alumni - Intuit

Yes, there is a question.

The requirements for issuing and filing a Form 1099-NEC (formerly use of the Form 1099-MISC), have not changed. If you pay someone or your are paid for services rendered, you are the company paying you must issue to the payee and file with the IRS Form 1099-NEC once that payment is greater than $600.

When you are signed into your TurboTax Online Self-employed account

Select Income & Expenses tab
Select Review beside Self-Employment income > Review beside the business
Edit Required to send 1099s (even if you already have 'Yes' marked)
This will allow you to return to the screen where you can click the hyperlink Help me prepare and file W-2s and 1099s
Click on Quick Employer Forms at this point while you are in the tax return

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

VolvoGirl

Level 15

For Online Self Employed version,

Log into your account

Scroll down to Your Account and click on Show

Click on Create W-2s and 1099s

In your return, Anywhere on any screen you see....

Help me prepare and file W-2s and 1099s

Click on it and the side box will open, Then click on Quick Employer Forms in the side box.

Or from the Account Screen it will take you directly to Quick Employer Forms

How to create W2s and 1099

https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869

garyburmanAuthor

Level 2

Thanks very much for your response, I really appreciate it! I was able to fill in the form. I'm not ready to do my taxes yet. Should I go ahead and mail this form to my contractor, or do I have to wait until I complete my taxes? (I'm guessing I can mail it, but want to be sure so I don't screw this up.)

Thanks!

Nora

VolvoGirl

Level 15

The 1099NEC is completely separate from your tax return. You can print and mail it now to your contractor. You will have to come back to efile it to the IRS. I don't know when efile will open.

Then you will have to manually enter it into your Tax return. You add it with all the other labor you paid. Just enter the total for all. That is Contract Labor on Schedule C line 11.

How to enter Contract Labor

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-contract-labor/00/27407