TomD8
Level 15

Business & farm

To add to @Critter-3 's answer:

 

If you are a self-employed sole proprietor, you do not issue a 1099 or W2 to yourself.   You enter your sole proprietor business's income & expenses on Schedule C of your tax return.

If your business hires independent contractors or subcontractors and pays them $600 or more for the year, then you issue a 1099-NEC to them.  You enter those payments on Line 11 of your Schedule C.

If your business has employees, then you issue a W-2 to them and report their wages on Line 26 of your Schedule C.    Note that if you have employees, then you must obtain an EIN for your sole proprietorship.

https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-an-ein

 

This IRS reference explains the difference between independent contractors and employees:

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...

**Answers are correct to the best of my ability but do not constitute tax or legal advice.