Commissions or Contract labor expenses

Forum|Forum|4 years ago
April 11, 2022
1 reply
0 views

Hello Experts,

I have 2 questions:

1. I paid an independent contractor thousands of dollars (she is a technician) and I don't know where to claim this expense. There are 2 places: line 10 Commissions & fees; and line 11 Contract labor. They are both for 1099-NEC independent contractors. Which one do I use?

2. Fidelity investment sent me the Form 5498 IRA Contribution Information, what do I have to do with it?

TurboTax Home & Biz Windows

JamesG1

Level 15

I like to report only IRS Form 1099-NEC payments under Contract Labor so that it is easy to tie the two together. But either is acceptable.

IRS Form 5498 reports your total annual contributions to an IRA account and identifies the type of retirement account you have, such as a traditional IRA, Roth IRA, SEP IRA or SIMPLE IRA. IRS Form 5498 will also report amounts that you roll over or transfer from other types of retirement accounts into this IRA. When you claim a deduction for your IRA contributions, you should reference the amounts on the IRS Form 5498.

IRS Form 5498 is for informational purposes only. You are not required to file it with your tax return. This form is not posted until May because you can contribute to an IRA for the previous year through mid-April. This means you will have finished your taxes before you receive this form.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"