On the 2021 Home and Business CD version, where do we enter a 1099-NEC expense???

[Radtree]

I paid finders fees to a colleague that total more than $600 in 2021, so accordingly I filed a 1099-NEC for the amount of these finders fees in January. So now where do I enter these expenses into the Home and Business desktop app (CD version)? When I go the business expenses section (Business > Business Income and Expenses), it provides various categories. The applicable one is "Commissions" (which is described as covering finder's fees, sales commissions, legal referrals, etc.)

HOWEVER, when I got there to enter the amount, the Turbotax instructions state, "Enter any commissions you paid to anyone that were *not included* as part of a 1099-NEC payment."  If I can't enter these expenses here, where can I enter them? Am I missing something? How do I get the expenses I incurred that I reflected on a 1099-NEC entered? Thanks!

[ColeenD3]

Enter it as contract labor on line 11.

[Radtree]

Looking at the instructions for Schedule C, it seems that the IRS actually states that when commissions and fees listed on Line 10 are $600 or more a 1099-NEC should be filed for them. So it would appear that the TurboTax instructions that any amount covered by 1099-NEC should not be listed as commissions and fees is just wrong. I should have checked the IRS instructions on this earlier...

[ColeenD3]

It's a matter of terminology. You will be fine on either line.

Line 10 Enter the total commissions and fees for the tax year. Do not include commissions or fees that are capitalized or deducted elsewhere on your return. You must file Form 1099-NEC to report certain commissions and fees of $600 or more during the year. See the Instructions for Forms 1099-MISC and 1099-NEC for details.

Line 11 Enter the total cost of contract labor for the tax year. Contract labor includes payments to persons you do not treat as employees (for example, independent contractors) for services performed for your trade or business. Do not include contract labor deducted elsewhere on your return, such as contract labor includible on line 17, 21, 26, or 37. Also, do not include salaries and wages paid to your employees; instead, see Line 26, later. You must file Form 1099-NEC to report contract labor payments of $600 or more during the year. See the Instructions for Forms 1099-MISC and 1099-NEC for details

[lharris624]

I have a similar situation.  Do you list each persons name and the amount of the 1099 or 

do you just summarize the expense?  For example I pay someone to clean my business and issued them a 1099-nec.  Do I list it as cleaning and the amount or do I actually list their name and the amount?

[JamesG1]

You report the category of the expense.  

For instance, if you paid a plumber for repairing a water line leak, you may report the expense as Repair.

If a person was paid for cleaning your business premises, you may report Cleaning / Maintenance.

A payment made to your accountant, may be reported as Professional fees.

@lharris624 

[lharris624]

Thanks that was the answer I needed.

[VolvoGirl]

Actually if you issued them a 1099NEC or 1099Misc you should list it as contract Labor on Schedule C line 11.  You only have to enter the names and amounts to transfer over to next year.  But only the  total goes to 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