1099-NEC : W2 Required ?

Forum|Forum|2 years ago
January 12, 2024
2 replies
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I have TTAX Business installed. I have 2 questions that are really confusing me.

- When going thru the prompts to create a 1099-NEC, the initial screen prompts for the various forms to create. One of them is a W-2 .. I need 1099-NEC because I pay a gardener > $600 for services at our rental. Personally I don't consider him an "employee", but apparently for Sched E, the IRS does. Do I REALLY need to send him a W-2 along with the 1099-NEC? I also used a Tree service to cut down a tree that cost $900. One time. Does HE need a W-2 also along with a 1099-NEC ?

- Lastly, I created a EIN on the IRS web site (because TTAX wouldn't allow me to create a W-2 without one). I created it as a "Partnership (sched E)" .. Was that the correct way, given that it's myself & my Spouse as co-owners of rental property? Although only 1 of our name(s) is used to create the EIN ?

TurboTax Home & Biz Windows

VolvoGirl

Employee

No you can't do both. You don't need to do the W2. Just the 1099NEC. Even if you need a W2 for an employee you do W2 and 1099NEC separately. Don't know why the program makes it sound like you need both.

Cody210Author

Employee

I think you meant "Don't Need Both" ? Thank you ... this makes much more sense. I never understood a need for a W-2 .. these guys are NOT my employees .... Just contractors I use for various gardening work.

(this whole 1099-NEC stuff is so needlessly complicated for us simple rental landlords.)

VolvoGirl

Employee

No I meant what I posted. Why did you think you needed both?

Carl11_2

Employee

Basically, your Gardner is not your employee, as you stated. So they only get a 1099-NEC and you're done.

Cody210Author

Employee

Yea, that was in fact my thought as well. Hence why I was confused why a W-2 was needed at all.. I deselected that option and am only using the 1099-NEC from now on..

Thank you all in this thread for setting me on the right path.