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Level 2
February 1, 2025
Question

1099 to 1099

  • February 1, 2025
  • 3 replies
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I was paid with a 1099 from a side job. But I paid a friend who worked with me from that income, but I got the 1099 under my name. How do I report payments to them, if I got it from a 1099? 

    3 replies

    Level 13
    February 1, 2025

    If you are a sole-proprietor and made payments to other subcontractors, you can report those amounts in your business expenses under the category "Contract Labor." You should also issue your friend a 1099, if it was for more than $600.

     

    Here's how to navigate there in TurboTax Online:

    • Use the magnifying glass on upper right, type "Schedule C" and click the first option in the search result, "Jump to Schedule C"
    • Choose edit or add the business
    • Choose "Add expenses for this work"
    • Scroll down to "Less Common", use the search feature and type "labor", or page until you get to "Contract Labor"

    Here is some information you may find helpful: A Guide to Self-Employment Taxes for Contractors, Freelancers, and Beyond 

     

    SmoliAuthor
    Level 2
    February 1, 2025

    So for 1099-NEC I going to be a filing as a business? 
    so do I write that person a 1099? Or? 

    SmoliAuthor
    Level 2
    February 1, 2025

    Can I make them a 1099-MIC

    VolvoGirl
    Level 15
    February 1, 2025

    The side job and 1099 is self employment income.  You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to Premium version. Or use any of the Desktop CD/Download programs. You can buy the Desktop CD or the Download program here,
    https://turbotax.intuit.com/personal-taxes/cd-download


    How to enter income from Self Employment
    https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

     

    Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.

     

    Here is some IRS reading material……
    IRS information on Self Employment
    https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center


    IRS Guide to Business Expense Resources
    https://www.irs.gov/forms-pubs/guide-to-business-expense-resources


    Turbo Tax Self Employed Tax Hub
    https://turbotax.intuit.com/personal-taxes/self-employment-taxes


    Turbo Tax Self Employment info
    https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed/L2HLojrj5

    VolvoGirl
    Level 15
    February 1, 2025

    For your friend.  That is Contract Labor Schedule C line 11. You can just enter the total or list each one. Only the total goes to schedule C.

     

     You need to give a 1099NEC to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

     

    You can prepare W2 and 1099NEC & 1099MISC in either the Desktop Home & Business program or the Online Premium version using the QEF Quick Employer Forms.


    How to prepare 1099 & W2
    https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869