Question

How do I report payments made to independent contractors via CashApp?

Forum|Forum|4 years ago
April 7, 2022
1 reply
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As the sole proprietor of a film/video production company, I paid several independent contractors more than $600 each via CashApp. I understand that I don't need to file a 1099-NEC for them, but where do I report those expenses?

TurboTax Live Self Employed

ColeenD3

Yes, you absolutely do have the issue them each a 1099-NEC. You would enter the amounts you paid under contract labor on Schedule C.

Form 1099-NEC.

The PATH Act, P.L. 114-113, Div. Q, sec. 201, accelerated the due date for filing Form 1099 that includes nonemployee compensation (NEC) from February 28 to January 31 and eliminated the automatic 30-day extension for forms that include NEC. Beginning with tax year 2020, use Form 1099-NEC to report nonemployee compensation.

1099-NEC