vcheli85
New Member

Get your taxes done using TurboTax

Question - if you issue someone an unnecessary 1099 (as referenced in the above question), and then click no on the question asked by Turbo Tax regarding you issuing 1099 payments, doesn't that 1. remove that payment as an expense you could have written off, and 2. potentially cause a tax discrepancy down the road if the recipient uses that 1099 on their tax return and there is no record of it in the IRS's database? All payments you issue, whether w2 or 1099, count as an income deduction, because that's less income you have to be taxed on...