Where do I enter a 1099 expense?

[dearroy]

I gave a sub contractor a 1099 for subcontracted work.

Where do I enter this expense?

I had the expense in Schedule C but found out this expense should go on the 1099-Misc   Where do I enter in in my Turbo Tax Program?

[Lisa995]

The expense goes on Sch C.   You issue the subcontractor a Form 1099MISC to show that you paid that much to him.

[Lisa995]

Contract Labor Line 11 of the Sch C is where you list the expense.

[DawnC0 · Accepted solution]

As Lisa stated above, your contractor expense does go on Schedule C.  In TurboTax, you enter it under Other Common Business Expenses (Contract Labor).

[MarkCochrane1984]

Good Morning,

I am hoping someone can help me here.  My wife started a small consulting gig where she gets reimbursed for flights, hotels, etc.  However, she earns a $1,000 fee for the consulting.  Are we able to write-off expenses such as travel that wasn't reimbursed, cost of a laptop, etc?  If so, what version of Turbotax should be use for 2109 taxes.  We both have regular jobs too so make about d$175,000 gross.  Just hoping to offset the speaking fee income.  We did not do any formal paperwork to incorporate as she will only do a few of these a year.  Any help would be so much appreciated.

Thanks,

M

[Critter]

If you are new to being self employed and  acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 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 line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. 
 
- 2. You expect your withholding and credits to be less than the smaller of: 
    90% of the tax to be shown on your current year’s tax return, or 
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

[Critter]

FYI ... she reports ALL the income on her return even the reimbursements ... then ALL the expenses incurred are deducted even the ones that were reimbursed.

[shirley37]

Very helpful.  Thanks,

Shirley