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Employee
September 11, 2023
Question

Issued a 1099 to a repairman for 1 job - do I deduct it in Repairs or put it in Compensation as a 1099, or both?

  • September 11, 2023
  • 1 reply
  • 0 views

With the new rules, my small business had to issue a 1099 to a repairman for one day of work, because it was over $600 and he's a sole proprietor, not a corporation. TurboTax business asks for 1099s issued in the Compensation section, but shouldn't this be counted as a repair expense instead? Will putting it in both places double count the expense?

1 reply

September 11, 2023

enter as a repair.  you can only deduct the expense once so putting in two categories would result of it being deducted twice which is frowned upon by the IRS and courts.

Critter-3
September 12, 2023

Either place would be acceptable just don't enter it twice.  Put it where is works best for you to aline with your bookkeeping records.