You don't "report" the 1099-Misc amounts separately; that is part of the financial data for whatever was the expense or reason those costs were incurred. It might be Expense for services or expenditure for assets improved by that service. It might be legal fees or engineering, for instance. Yes = subject To the use of the form based on the requirements for using that form. "Filed" or not means, did they get issued to the people and sent to the Feds with a 1096, or not? There is no Additional Deduction. The financial info is what it is, and is not affected by the fact that it also required issuing a 1099-Misc because of the nature of that spending.