Sole-Proprietor LLC and hired my wife as an independent contractor

[STSublime1]

I am a sole proprietor of an LLC and hired my wife as an independent contractor for the last 6 months of 2021. I issued her a 1099-NEC based on the invoices and payments I made to her from the business. I itemized the amount as a contract labor expense on my business deductions in TurboTax. I also entered the 1099-NEC income on the personal income portion of our taxes as my wife's income.

I feel like my tax obligation seems higher than it should and am worried I'm getting double-dipped somewhere on the self-employment taxes.

Anyone know what I should be double checking and/or what can be done if my assumptions are correct?

[VolvoGirl]

Where did you enter her 1099NEC?   You need to fill out a new Schedule C for her independent contractor income.   She will also owe self employment tax on her 1099NEC.

So if you only entered her 1099NEC as personal other income you are going to owe even more.  And by paying her it is a wash with your contract labor expense deduction.  

[STSublime1]

Thank you! I have her in as her own sole proprietor now on her own Schedule C, but unfortunately that liability number is still higher than anticipated. I'm going to dive back in and pour over everything once more.