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How do I deduct money I paid to a contractor?

I paid a contractor over $30,000 and wrote them a 1099, but I'm not sure how to deduct this.
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6 Replies
Carl
Level 15

How do I deduct money I paid to a contractor?

What did you pay the contractor for? Are you self-employed? Just because you pay someone an amount of money, does not mean it's deductible. it depends on what you paid for, and why.

 

How do I deduct money I paid to a contractor?

That is 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

How do I deduct money I paid to a contractor?

Re: What form do i use to send to a contractor i paid money to do rental repair work last year ?

How do I deduct money I paid to a contractor?

I paid 2 contractors over $2500 for repairs to my rental property.  Do i need to send them a 1099-NEC form ?

How do I deduct money I paid to a contractor?

I paid 2 contractors over $2500 for repairs to my rental property.  Do i need to send them a 1099-NEC form ?

JamesG1
Expert Alumni

How do I deduct money I paid to a contractor?

Possibly, IRS Instructions for Forms 1099-MISC and 1099-NEC on pages 7 and 8 state:

 

File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.

 

At least $600 in:

 

  • Services performed by someone who is not your employee (including parts and materials) (box 1)

 

and

 

Trade or business reporting only

 

Report on Form 1099-NEC only when payments are made in the course of your trade or business. Personal payments are not reportable.

 

and

 

Independent contractor or employee

 

Generally, you must report payments to independent contractors on Form 1099-NEC in box 1.

 

@Feelinggood957

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