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tominnorcal
New Member

I paid a person $18,000 and gave them a 1099 MISC- how do i enter this as an expense for my usiness in turbo tax?

I want to enter this as an expense for my business but Turbo tax seems to think only in terms of incomer - My forms are already sent into the feds - Im just trying to enter the $18,000 EXPENSE for my small busines. Can't figure out how to do it.
1 Best answer

Accepted Solutions
HelenaC
New Member

I paid a person $18,000 and gave them a 1099 MISC- how do i enter this as an expense for my usiness in turbo tax?

First, delete the income 1099-MISC that you entered in TurboTax. The 1099-MISC form that you generated would be an expense listed as Contract Labor.

To enter your Contract Labor business expense: 

  • Type Sch C in the search/find bar and click search/find.
  • Click on Jump to Sch C.
  • Click on start/edit or Add Another Business.
  • At the Your XXX Business screen, scroll down to Business Expenses, Other Common Business Expenses. Click Start/Edit. 
  • On the Let's write off some business expenses, scroll down to Contract labor. 
  • Continue with the onscreen interview. 

See the screenshot below.

Related information: What is Schedule C?

View solution in original post

3 Replies
HelenaC
New Member

I paid a person $18,000 and gave them a 1099 MISC- how do i enter this as an expense for my usiness in turbo tax?

First, delete the income 1099-MISC that you entered in TurboTax. The 1099-MISC form that you generated would be an expense listed as Contract Labor.

To enter your Contract Labor business expense: 

  • Type Sch C in the search/find bar and click search/find.
  • Click on Jump to Sch C.
  • Click on start/edit or Add Another Business.
  • At the Your XXX Business screen, scroll down to Business Expenses, Other Common Business Expenses. Click Start/Edit. 
  • On the Let's write off some business expenses, scroll down to Contract labor. 
  • Continue with the onscreen interview. 

See the screenshot below.

Related information: What is Schedule C?

Laura_zzzz
Returning Member

I paid a person $18,000 and gave them a 1099 MISC- how do i enter this as an expense for my usiness in turbo tax?

but if I entered there I don't get the whole credit of what I paid the subcontractor

VictoriaD75
Expert Alumni

I paid a person $18,000 and gave them a 1099 MISC- how do i enter this as an expense for my usiness in turbo tax?

Yes, you will be able to use 100% of the expense against business income. It will be reported on line 11 of Schedule C. All business income will report on line 7 and total expenses will be added to line 28 to reduce the income for net business profit/loss on line 31. 

 

Schedule C

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