topic 1099-NEC : W2 Required ? in Investors & landlords

1099-NEC : W2 Required ?

Cody210 — Tue, 10 Feb 2026 10:06:32 GMT

I have TTAX Business installed. I have 2 questions that are really confusing me.

- When going thru the prompts to create a 1099-NEC, the initial screen prompts for the various forms to create. One of them is a W-2 .. I need 1099-NEC because I pay a gardener > $600 for services at our rental. Personally I don't consider him an "employee", but apparently for Sched E, the IRS does. Do I REALLY need to send him a W-2 along with the 1099-NEC? I also used a Tree service to cut down a tree that cost $900. One time. Does HE need a W-2 also along with a 1099-NEC ?

- Lastly, I created a EIN on the IRS web site (because TTAX wouldn't allow me to create a W-2 without one). I created it as a "Partnership (sched E)" .. Was that the correct way, given that it's myself & my Spouse as co-owners of rental property? Although only 1 of our name(s) is used to create the EIN ?

Re: 1099-NEC : W2 Required ?

VolvoGirl — Fri, 12 Jan 2024 16:51:57 GMT

No you can't do both. You don't need to do the W2. Just the 1099NEC. Even if you need a W2 for an employee you do W2 and 1099NEC separately. Don't know why the program makes it sound like you need both.

Re: 1099-NEC : W2 Required ?

Cody210 — Fri, 12 Jan 2024 17:36:33 GMT

I think you meant "Don't Need Both" ? Thank you ... this makes much more sense. I never understood a need for a W-2 .. these guys are NOT my employees .... Just contractors I use for various gardening work.

(this whole 1099-NEC stuff is so needlessly complicated for us simple rental landlords.)

Re: 1099-NEC : W2 Required ?

VolvoGirl — Fri, 12 Jan 2024 18:04:35 GMT

No I meant what I posted. Why did you think you needed both?

Re: 1099-NEC : W2 Required ?

Cody210 — Sat, 13 Jan 2024 16:12:59 GMT

I guess why is because when I bring up the first screen, there are 3 check boxes - W2, NEC, and Misc .. for whatever reason, I just thought I needed to check W-2 also ... (It's what I mistakenly did last year).

Anyway, thanks for clarifying... this makes more sense, finally.

Re: 1099-NEC : W2 Required ?

Carl — Sun, 14 Jan 2024 16:19:29 GMT

Basically, your Gardner is not your employee, as you stated. So they only get a 1099-NEC and you're done.

Re: 1099-NEC : W2 Required ?

Cody210 — Sun, 14 Jan 2024 17:10:16 GMT

Yea, that was in fact my thought as well. Hence why I was confused why a W-2 was needed at all.. I deselected that option and am only using the 1099-NEC from now on..

Thank you all in this thread for setting me on the right path.