Where to deduct payment to s-corp

[cidershirt]

I paid an S Corporation in 2021. I think this goes under "Contract Labor" Line 11 on my Schedule C but I did not issue the S Corporation a 1099-NEC due to the fact that you are not required to issue 1099-NECs to S Corporations. Where should I deduct the expense if I did not issue a 1099-NEC (and was not required to)?

Please note I also paid other sub-contractors in 2021 but I did issue them 1099-NECs because they were all sole-proprietors. Therefore my Line 11 would include their payments for sure, I am not sure if I should include the payments to the S Corp there too.

[Anonymous_ · Accepted solution]

Whether or not you are required to issue a tax reporting statement to the individual or entity that performed services for your business does not alter where the expense is entered on Schedule C.

As a result, you would enter the payment made on the same line (11).

[DawnC]

Yes, you can include the payments to the S-corp. with payments to the sole proprietors on Line 11.    All of your contract labor expenses can go on that line whether or not you issued them a Form 1099.