First, you will need to use TurboTax Self Employed to enter your single member LLC income and expenses. You also will be able to record the contractor payments on 1099 MISC forms that you create for your contractor employees. TurboTax Self Employed (Online)
Next, to set up the LLC business and enter the payments made to your contractor employees in TurboTax, you will want to be in your Federal return in TurboTax. Then under the "Income & Expenses" tab at the top of the screen, select the "Self Employment Income & Expenses" section and then select to ADD or EDIT your LLC business.
The next several screens will ask you for the type of work your self-employment business is, as well as the name, when it started, etc. Eventually, you will come to a screen asking if you paid W-2 employees -- answer NO. The next screen should ask if you paid contractors for your work.
Note a couple things on this contractor payment screen: (see sample screenshot below)
First, if you need to PREPARE a 1099 MISC to give to your contractor employees, there is an option on the screen to do that where it states "help me to prepare W-2 and 1099s." This will bring you to another module called Quick Employer Forms where you can prepare the 1099 MISC forms, print copies for your recipients and yourself, as well as electronically file copies to the IRS.
Second, to record the expense of the contractor payments in your tax return that you will record on the 1099s, you will select YES that you made a contractor payment, and you will be brought through screens to record the payments made.
