I am a sole proprietor filing my business income o...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
dmckelvieg
New Member

I am a sole proprietor filing my business income on schedule C. I need to report payments to independent contractors for service. where is the 1099nec?

I am a self employed attorney. I contracted with a paralegal and web tech as independent contractors, both paid more than $600. How can I prepare the 1099NEC through turbotax self employed?
4 Replies
VolvoGirl
Level 15

I am a sole proprietor filing my business income on schedule C. I need to report payments to independent contractors for service. where is the 1099nec?

You need to give a 1099 NEC or 1099 Misc to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31.

 

To prepare W2s or 1099NEC or 1099MISC you need to use the Online Self Employed version or buy the Desktop CD/Download Home & Business program or the separate Turbo Tax Business program.

 

How to prepare 1099NEC 1099Misc & W2
https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869

Rick19744
Level 11

I am a sole proprietor filing my business income on schedule C. I need to report payments to independent contractors for service. where is the 1099nec?

As a follow-up, I just want to make sure you are comfortable with the position that the paralegal is in fact an independent contractor and not an employee.

This is a facts and circumstances area.  Some items to look at:

  • take a look at Rev Rul 87-41; old but still used 
  • the key and main focus is do you have the right to direct and control
  • you can also look at Pub 15-A

 

*A reminder that posts in a forum such as this do not constitute tax advice.*
dmckelvieg
New Member

I am a sole proprietor filing my business income on schedule C. I need to report payments to independent contractors for service. where is the 1099nec?

Thank you for your info. The paralegal is definitely an independent contractor. He lives in another state and has his own LLC that provides paralegal support to attorneys on a per project basis. I have no direction over his hours, days, how he does the work. I have hired him to provide support services solely on two complex cases and we have a contract.

Rick19744
Level 11

I am a sole proprietor filing my business income on schedule C. I need to report payments to independent contractors for service. where is the 1099nec?

Perfect.  The clarification helps.

*A reminder that posts in a forum such as this do not constitute tax advice.*
Dynamic AdsDynamic Ads
v
Privacy Settings