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March 14, 2023
Question

I issued a 1099 to an independent contractor. Where do I deduct it on schedule C?

  • March 14, 2023
  • 1 reply
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1 reply

CatinaT1
March 14, 2023

This is a contract labor expense on your Schedule C.

 

IRS Schedule C instructions, Page C-7

Line 11 Enter the total cost of contract labor for the tax year. Contract labor includes payments to persons you do not treat as employees (for example, independent contractors) for services performed for your trade or business. Do not include contract labor deducted elsewhere on your return, such as contract labor includible on line 17, 21, 26, or 37. Also, do not include salaries and wages paid to your employees; instead, see Line 26, later. You must file Form 1099-NEC to report contract labor payments of $600 or more during the year. See the Instructions for Forms 1099.

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