We're having a discussion between two preparers—one thinks each 1099 should get its own Schedule C, while the other thinks they can all be grouped together on one Schedule C with all the expenses reported together. What's the right way to do it?
That discussion has a much clearer ending than if they were discussing which came first - the chicken or the egg? Sounds like the one preparer bills by the form and is eager to gouge clients for unnecessary work.
@IRonMaN wrote:
Sounds like the one preparer bills by the form and is eager to gouge clients for unnecessary work.
I don't remember if this story was told on this forum or somewhere else, but that reminds of something I read last year about TurboTax.
Someone was working for the "full service" department of TurboTax where they prepare the entire tax return. That person wanted to enter the gross income directly on Schedule C. But their manager insisted that everybody enter each individual 1099-NEC. As you can guess, the customer is charged for each 1099-NEC that is entered.
These companies are his customers. He's got/is this one business.
1099-NEC is an informational form. If your client drove for 1 or 150 businesses, such as a courier, and if no one paid him $600 or more in the year, he'd never get a 1099-NEC at all. Yet, he would report all of this on the tax form, all revenue and expense. If he drove only for private people and they paid him $1million, he would not get a 1099-NEC, yet he would report all of this on the tax form, all revenue and expense.
The 1099-NEC forms are not the tax reporting paperwork.
I put them all on one.
It's all the same business so you would file 1 schedule C
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.