Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.
09-27-2017 11:37 AM
When I entered my Schedule C last year, I noticed that there are two choices at the beginning. One says something about income from a small business or self employment and the other is for 1099 income. I picked the 1099 choice because I had issued several of those to my contractors. Then I didn't see a place to put the expense (sounds like the same thing you did). It took me a while to realize that I should have picked the other option - the one about self employment. The program was asking if "I" had 1099 income not if I "paid" contractors on a 1099. The bummer was that I had to delete all the stuff I had entered and start my Schedule C over. If you choose the option for self employment or small business to start with, you will have the option to expense the contract income you paid. Hope my mistake helps you.
09-27-2017 10:40 PM
You nailed it on the head...they are very similar avenues, until you try to add contract labor. the annoying part is that what it uploaded from last year for my business...even though last year I had no issues adding contract labor. I felt like there were subtle differences this year, but racked it up to new year, new software. you saved me from pulling my hair out. Thank you, much appreciated.
10-10-2017 09:24 AM
Sorry for the lateness of this reply. I believe your problem is probably the new screen they put in last year in the Schedule C section. There are two choices -
I have freelance or contracting income reported to me on a 1099-MISC, Box 7
I have income and expenses from self-employment or a small business
If you choose the first one, there are many screens that do not appear, and on screens that do appear, some lines are not there. Contract labor happens to be one of them. Check this screen to see if you checked the first line. If you did, switch to the other choice, then go through the self-employment section again to make sure you answer all the questions on the pages you haven't seen before. You'll also have a line on the "business expenses" page called Contract labor.
To get back to this section, click Income, then Revisit on the Self-employment box, then Edit on the line with your business, then Revisit on the line for Business description and code. This brings you to the page with the above two choices.