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.

[Mental-Colorado]

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?

[Vanessa · Accepted solution]

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.

[maglib]

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

[Mental-Colorado]

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.

[maglib]

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