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Reporting Contract Labor
Should I report all 3 of the following contract labor types under TTax "Contract Labor" Business expense section for my self-employed home based business which uses my name as business name:
1. Those I paid less than $600 and did not issue a 1099NEC?
2. Those I paid more than OR less than $600 using Paypal who then decides whether to issue a 1099 NEC?
3. Those I paid more than $600 and personally issued a 1099NEC?
TTax doesn't ask about method of payment so I don't want the IRS to think I mistakenly did not issue a 1099NEC when it was Paypals responsibility.
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Get your taxes done using TurboTax
Yes the total goes on Schedule C line 11 Contract Labor. You don't need to break it out or enter each one individually. You can just enter the total for all. Only the total goes to line 11.
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Get your taxes done using TurboTax
Oh, thank you. That makes sense...I just enter them individually on TTax which then just shows the IRS the total on line 11. So it does not matter to IRS that my total contractor expense does not match the Form 1096 that I filed for 1099 NEC's?
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Get your taxes done using TurboTax
No. That's ok. Same for your own income. Did you receive any 1099NEC? Only the total income goes to line 1.