Where do I report work done by a freelancer?

[Rashad001]

Hi, I am soon to become a sole proprietor and was wondering if I hire a freelancer to gather email leads, which line am I supposed to report the expense for how much I paid them?

[DavidD66 · Accepted solution]

You would report that on Schedule C - Self-Employment Profit & Loss, along with your revenue and other expenses.  You would list it under "Other Expenses" as "Contract Labor".   If you pay someone (individual or business, unless a corporation) $600 or more, you will need to issue them a Form 1099-NEC.  For more information see IRS Publication 334 - Tax Guide For Small Business (For Individuals Who Use Schedule C)

[Rashad001]

Thank you David for that well explanation!

[VolvoGirl · Accepted solution]

If you paid anyone $600 or more you need to give them a 1099NEC (was a 1099Misc).  But not to corporations or for merchandise. You send the IRS a copy of the 1099NEC with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

That is Contract Labor on Schedule C line 11.

How to enter Contract Labor

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-contract-labor/00/27407

How to create W2s and 1099

https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869