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Level 1

How do I deduct expenses related to 1099-misc? I was paid to organize a special event, but I used that payment to pay for other contractors like the band, and lighting.

As a side job not related to my main source of income as an employee of a corporation, I managed a special event. The client cut me a check to cover my management fee and additional expenses like paying for the band, sound and lighting.

The 1099-misc I received is for the full amount. How do I deduct for the additional expenses related to that payment I received?

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Accepted Solutions
Level 3

How do I deduct expenses related to 1099-misc? I was paid to organize a special event, but I used that payment to pay for other contractors like the band, and lighting.

To enter expenses related to your 1099-Misc once logged into your return click the following

  • Tax Home
  • Federal
  • Wages and Income
  • Scroll down and click Add More income
  • See list of all income
  • Click Show More next to Self-Employment
  • Start next to Self-Employment
  • As you walk through the entries you will be prompted to upgrade to enter your expenses

This will all be reported on Schedule C as a sole proprietorship since you were paid as an independent contractor.

4 Replies
Level 3

How do I deduct expenses related to 1099-misc? I was paid to organize a special event, but I used that payment to pay for other contractors like the band, and lighting.

To enter expenses related to your 1099-Misc once logged into your return click the following

  • Tax Home
  • Federal
  • Wages and Income
  • Scroll down and click Add More income
  • See list of all income
  • Click Show More next to Self-Employment
  • Start next to Self-Employment
  • As you walk through the entries you will be prompted to upgrade to enter your expenses

This will all be reported on Schedule C as a sole proprietorship since you were paid as an independent contractor.

Level 10

How do I deduct expenses related to 1099-misc? I was paid to organize a special event, but I used that payment to pay for other contractors like the band, and lighting.

Question: did you issue a 1099 to the band or others you hired if amounts were over $600?
Level 1

How do I deduct expenses related to 1099-misc? I was paid to organize a special event, but I used that payment to pay for other contractors like the band, and lighting.

I did not. However, I do have invoices from them. If the band is their own LLC, then they are responsible for their own tax liability, right? I shouldn't have to  issue a 1099 for every service I procure from other companies.
Level 10

How do I deduct expenses related to 1099-misc? I was paid to organize a special event, but I used that payment to pay for other contractors like the band, and lighting.

correct, it is when you hire individuals, many bands and such are not legal companies and why I was asking....