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January 24, 2025
Question

how do i add sub contractors that worked for me

  • January 24, 2025
  • 1 reply
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i had multiple people that worked as sub contractors how do I give them a1099 and deduct those from my taxes

    1 reply

    January 25, 2025

    As a business owner, you must provide a 1099-NEC to anyone who provided more than $600 in services to your business in a year. If you have more than 10 subcontractors, you must file the 1099-NECs electronically. The deadline to provide subcontractors with the form is January 31.  You can deduct subcontractor labor on Schedule C, line 11 for Contract Labor, or you can include it in another expense line that better describes the work they did for your business.

     

    To prepare the form, you need the following information about the subcontractor:

     

    • Social Security number or employer identification number
    • Legal name
    • Mailing address
    • Amount your business paid them during the year

    You can e-file your forms using Quick Employer Forms, but there may be additional fees. Another option is to e-file through the IRS website portal. Here is a link.

     

    If you have fewer than 10 subcontractors, you can prepare the Form 1099-NEC in TurboTax Home & Business, but you can't e-file. Here are the steps to print and mail your forms to the IRS:

     

    1. Go to "File" on your menu bar and select "Create 1099/W-2."
    2. Select "Create forms on Desktop."
    3. You should see the forms you have already created.
    4. Prepare a Form 1096 to attach to your Form 1099s. Form 1096 is a summary that totals all your Form 1099s.
    5. Print Form 1096 and Form 1099-NEC on special scannable pink forms, which you can purchase or order from the IRS.
    6. Here's a link to the IRS mailing addresses for your forms. They can vary.

    For more information, see this TurboTax Help Article.