How do I write this 1099 contractor off.

skiandboard · #1 (**permalink**) 02-07-2009, 02:40 AM

I was employed by a company to do sales for them, I was an employee and sent a w-2. Because the work load was overwhelming I hired an individual as a contractor to help with cold calling, compiling direct mail, and doing other tasks as they relate to sales. I did not dictate this person's work schedule, they worked from their home and created their own hours and etc. I have given this person a 1099, but since I am not a business, how do I then write this off on my personal income taxes.

TaxGuru · #2 (**permalink**) 02-07-2009, 11:17 PM

I have a little problem with this situation, you have no income to report against this payment of contractor services that you hired. You were paid via a W-2 and you hired a contractor and you gave him a 1099?

On what basis did you make this decision? Did you consult a CPA? What does he say how you should treat this?

The only option is report this payment on Schedule C and report his expense. But, the problem is how do you report income on Schedule C? There was none to report, unless I missed something here?

I think this calls for you to consult with a CPA and you better explain to him or her your entire situation and then take his advise to determine what is the best solution for you!