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Be careful with the answers received. Contract Labor is not Custom Hire (Machine Work), it is Labor Hired
Log into your return, then...
I have included a couple screenshots to help get you started.
Custom Hire category in TurboTax can be used for ANY contract labor or services (large or small) that your farm hires where the service is provided by someone other than a W-2 employee. This includes anyone you issued a 1099-misc to. If you feel this does not describe the category correctly, you can always use Other Miscellaneous Expenses under Farm Expenses and label the expenses with your own description.
Are you saying the IRS is wrong and that you and Turbotax are right? Don't take my word for it, look at the proof. Look up Schedule F: Form 1040 Profit or Loss from Farming, Line 13, Custom Hire (Machine Work). That is not the same thing as contract labor and never has been.
Custom hire is contract hire OR machine hired work. It's a payment for work or services that have been done on your farm to another self employed person or business.
From IRS Instructions for schedule F, page F-6;
Line 13
Enter amounts paid for custom hire or machine work (the machine operator furnished the equipment). Don't include amounts paid for rental or lease of equipment you operated yourself. Instead, report those amounts on line 24a.
I can't see the screenshots you mentioned. Where do I go?
Contract labor is entered on line 22, "Labor Hired," on Schedule F. Per the IRS Schedule F Instructions (page F-8), this line is used to report amounts paid for "farm labor." To enter your farm contract labor into TurboTax please see the instructions below:
Just another request as to how to see the screenshots or other attachments mentioned by previous posters in this forum.
I am not able to access the screenshots posted by other users. However, here are some screenshots that relate to the steps that were posted earlier.
Step #4 Farm Expenses
Step #5 Gross Wages
Thank you Barbara for the succinct instructions.
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