Using TurboTax Self-Employed 2022 but got confused with the payment options with payments to foreign contractor

[mobius]

I am filing my tax return with Self-Employed 2022. But I am very confused with payments that I made for my sonsulting work. I have a Canada based sub-contractor that I paid to work on my project. I do have his Form W-8BEN so I don't need to withhold his tax when I made payments.

Now, in Turbo Tax there are two options. 

• Paid a contractor $600 or more to do work for me. 
• Made payments that required me to send a 1099 form. 

( ) Yes, I made at least one of these payments.

( ) No, I didn't make these payments.

Should I choose Yes or No? I did paid over $600, but if I choose yes, the system would require me to send 1099. So I guess I had to choose No?

[ThomasM125 · Accepted solution]

You should enter NO since you are not required to send a form 1099-NEC to a contractor that resides and performs services in a foreign country.