Where do I record the 1099 NEC expenses I paid to others as an expense on for Form 4835 (farm rental income)?

Forum|Forum|3 years ago
March 20, 2023
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I completed my NEC 1096 and 1099 forms for my passive farm related income/expenses that I record on Form 4835. I can easily find the "link" to attach any 1099 misc or 1099 nec forms that I would receive if I was the recipient of the income - but I cannot find out how to properly record the expenses on form 4835. Help!

Not A Product Question

Best answer by DawnC

Right, it is an expense, but not an employee or payroll expense. You can put it in the Labor Hired (Line 20) expense category. On line 20, you can deduct reasonable wages paid for regular farm labor, piecework, contract labor, and other forms of labor hired to perform your farming operations. You can include wages paid to your employees and to independent contractors on that line. You could also use the Other Expenses expenses category. The net result will be the same.

There is a box to mark to tell TurboTax that you need to file 1099 forms, but you still have to enter the amount of those 1099 expenses separately. So, it doesn't matter if you marked those boxes or not.

Form 4835 with instructions

Farmer's Tax Guide

PattiF

Here is information about reporting this income and expenses from @ErnieSO:

Here's how to report farm rental income on Form 4835:

Tap Federal in the left column,
Tap Wages & Income
Scroll down to Rentals, Royalties and Farm, and select Show more
Select Farm Income and Farm Rental
On "Did you have any farm or farm rental income in 2022?" tap Yes
On "Tell Us About Your Farm or Farm Rental Income," select I received a share of the production from my farm rental
Select I did not materially participate in my farm rental, then Continue
Complete the rest of the screens

Learn more at What is Form 4835: Farm Rental Income and Expenses

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SP4444Author

I mailed the 1099 NEC forms to a feedlot that fed calves for me for a number of months. They are not my employees .... and unless I am reporting income that I receive from someone else... I do not see anywhere to put the amount I paid a non employee as an expense. If the IRS "matches" what I report as a 4835 expense to what someone else should report as a 1099 NEC income.... WHERE do I put that amount that I paid as an expense on my 4835 form?

I have looked very carefully at the 4835 form and ? unless I put it at the end as "other" .... I don't want to put an NEC expense under the "employee" expense item....

I do not know where I should put it and turbotax does not ASK me in an interview if I filled out NEC 1099s related to 4835