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Chipster
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New Small Business Tax Question -Independent Contract Employees

I took on helping a friend who just started this business. Thought all 3 1099 NEC were his funds and after days of sorting out his tons of papers before starting taxes, realize he was paying a lot of workers 'under the table'. I know he didn't realize that by doing this he was taking on all their taxes too. Now here we are, last minute, have filled out all his assets and expenses and, of course, there's no way he won't owe. He had several regulars working with and for him all year and he thought he was doing a good thing by taking care of business and everybody gets paid. Now here he is holding the bag. He needed to do a 1099NEC for each of them, about 8 or 9. It's 7 pm, October 15. What to do? I've never done a 1099NEC either.

Ideas?

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5 Replies

New Small Business Tax Question -Independent Contract Employees

Did he paid some people more than $600 for the year?  Then he needs to give them a 1099NEC.  Does  he have their names and ssn?  He should go ahead and file his own return and can enter the total he paid everyone as Contract Labor.  And worry about the 1099NEC later.  

 

Did he receive 3 1099NEC for his own income?  You can just enter all his income  as Other self employment income or as Cash or General income. You don't need to get a 1099NEC or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C. You should be entering the income from your own records.

 

How to prepare 1099 & W2
https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869


You can prepare W2 and 1099NEC & 1099MISC in either the Desktop Home & Business program or the Online Self Employed version. If you are using the Home & Business version are you on Windows or Mac? The Mac version only lets you use the Online Quick Employer Forms and efiles the 1099NEC & 1096 Transmittal form.

Chipster
New Member

New Small Business Tax Question -Independent Contract Employees

All 3 1099 NEC came to him as his income. But he had at least 8 people who made well over 600 during the year--some as much as 35,000, so he is carrying a massive amount of income to be taxed that is not his.

Chipster
New Member

New Small Business Tax Question -Independent Contract Employees

I have the Home and Business Windows version. Do I complete and file the 1099 NEC's this late?

New Small Business Tax Question -Independent Contract Employees

As I said you can enter the total he paid under Contract Labor on Schedule C line 11.

 

How to enter Contract Labor

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-contract-labor/00/27407

New Small Business Tax Question -Independent Contract Employees

Get his tax return done first.  Then you can do the 1099NEC .

 

In the Windows Home & Business Desktop program or the separate Business program you can prepare W2 & 1099 on your computer using the built in W2/1099 Reporter or online using the Quick Employer Forms. If you do them on your computer you have to mail the forms to the IRS yourself.

 

In the Window's Home & Business or Business Desktop program to Prepare W2s or 1099s, go up to Start a New Return or File-New Return.

Then on the next screen it asks What would you like to do?

 

Check the circle that says Prepare W-2s and 1099s for my employees or contractors.  Then that will expand and give you a choice to prepare them online or on your computer.

 

 

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