Tax Year Prior to 2020: Can I report an amount paid to a contractor as a business expense if doing business under my own name and I did not issue them a 1099?

[kato]

I paid a prodco $5000 to produce a video.  Can I report this as an expense against my "writing business" income, if I didn't issue the prodco a 1099 and I'm doing business under my own name?

[KarenL2]

Yes, but you still need to issue the 1099-MISC unless the company you paid is a corporation.  It's better to be late than not sending them at all.  The minimum fines are higher if you disregard the requirement to file them.

"The penalty against the company varies from $30 to $100 per form ($500,000 maximum per year), depending on how long past the deadline the company issues the form.   If a company intentionally disregards the requirement to provide a correct payee statement, it is subject to a minimum penalty of $250 per statement, with no maximum. "

Penalties for Not Filing 1099-MISC

How to get to that area to enter your Contract Labor :   While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area. 

• Business Income and Expenses
• select Edit next to your business (if it is there)
• scroll to Business Expenses
• then, Other Common Business Expenses
• select that, then on the next screen you will see categories and can choose Contract Labor

[kato]

Thx for the quick reply.  If I consider it an "advertising expense", am I still obligated to issue a 1099? (If so, it seems I'll need to be issuing 1099's left and right...)

[KarenL2]

Unfortunately, yes you do for anyone you hire/contract to do work for you and you pay them $600 or more (unless they are a C - or S- Corporation).