How do I issue a 1099 as individual(selfemployment) to my EIN company?

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nediaz
nediaz Member Newcomer

I created a company with a business account, but for regulations with the client(NY Agency) the payments were being received in the personal account. Deposits were then being made from the personal account to the business account and I paid everything from the business account.
I have an accountant(only work the company not personal taxes) who does our accounting for the company, and he asked me to issue a 1099 for payments or deposits made to the business account.

How do I issue a 1099 as individual(selfemployment) to the EIN company?

Where should I put it, in schedule C?

Answers

  • RyanZ
    RyanZ FreeTaxUSA Agent
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    You will issue a form 1099-NEC or 1099-MISC only on outgoing payments to other persons or companies, for which you are claiming a deduction on your income tax return. The specific type of 1099 will depend on the nature of the transaction. Please refer to the instructions for these two forms on the IRS.GOV website:
    https://www.irs.gov/instructions/i1099mec

    The IRS now provides a portal through which you may prepare and file your forms 1099:
    https://www.irs.gov/filing/e-file-forms-1099-with-iris

    When entering on the Schedule C, if the 1099 is for Rents paid, enter it as Rent Expense. If the 1099 is for services (such as subcontractors), enter it as Contract Labor.