Who Should I categorize as Contract Labor?

[Maurenkg]

Hi!

I've been categorizing as "Contract Labor" transactions I paid to Upwork, to my developer's company in India, and to the Virtual Assistant that lives in the US but charges me via her company. 

I recently read that I should categorize as "Contrat Labor" people I issue 1099s to but I really don't issue this form to those cases explained above (Upwork, developer, and virtual assistance) should I start categorizing them as "Legal fees and professional services" fee? 

Thanks!

[pk]

@Maurenkg , assuming that  (a) you are a self-employed / sole-prop. business / single member LLC filing  Schedule-C  or similar ; (b)this is your first year; (c) you pay for "Upwork"   (&  its support facility )  in furtherance  of your business,  I would look upon this as a service  ( to find  talent ) and not under "legal & professional" .  You can also  show this and the amounts you pay to a developer ( in India? ) under  "Other expenses" category wherein you can details  the recipients details and the amounts paid.   Bottom line  is because  you are either dealing with an entity ( local or foreign) or a person ( foreign) , you do not need to issue 1099s.  If the "developer " was a US person, then obviously you have to issue 1099  ( need tax id  and generally work is done  on US soil ).

Does this make sense?  Is there more I can do for you ?