Using TurboTax Home & Business, how do I file a 1099 MISC for a subcontractor I paid and where is this expense reflected in the both the EasyStep and Forms sections?

[AmandaR1 · Accepted solution]

General subcontractors in your business industry can be entered under 'contract labor' line 11.  However, you can deduct contractor amounts under the applicable expense category (schedule C lines 8-27). For example, a marketing contractor could be entered under 'advertising' on line 8 or payments to your lawyer may be entered under 'professional fees' on line 17.  

To enter these expenses in the TurboTax Self-Employed Edition, follow the instructions below. 

1. Log in and click Take me to my return
2. Click Federal Taxes and then Income & Expenses (If you have the blue button 'Check for more income', click it and then click 'Skip to see all income')
3. Next scroll down to Self-Employment and click Show more
4. Click Start/Revisit next Income & Expenses
   
5. Next, click Edit next your applicable Self-employed business.
   
6. Click Add expenses for this work and on the next screen you'll see a listing of the common business expenses (including those mentioned above).
   
7. Scroll down and click Less common expenses. Additional expenses will show and you'll see Contract labor listed.
   

At step #2, if you do not have a Federal Taxes tab then instead click the  Business  tab instead and then:

• Click Continue and then select I'll choose what I work on 
  
• Click Start/Revisit next to Business Income & Expenses 
• Then click Edit next to the applicable Self-employed Business 
• Scroll down to the Business Expenses section and click Start/Update next to Other Common Business Expenses 
  
• Next, you'll see a listing of all the expense categories discussed above including Contract labor.