How to report professional services fees on taxes
FAQ | Professional Services Guide
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Guide overview
- 1. Professional Services Basics
- 2. Client Management and Retention
- 3. Project Definition
- 4. Resource Planning
- 5. The Ultimate Guide to Capacity Planning
- 6. Project Visibility
- 7. Billing for Projects
- 8. Project Profitability
- 9. Professional Services Software For Project Management
- 10. A Guide to Time Tracking for Consultants and Professional Services
- 11. FAQ
- 12. Glossary
Guide overview
- 1. Professional Services Basics
- 2. Client Management and Retention
- 3. Project Definition
- 4. Resource Planning
- 5. The Ultimate Guide to Capacity Planning
- 6. Project Visibility
- 7. Billing for Projects
- 8. Project Profitability
- 9. Professional Services Software For Project Management
- 10. A Guide to Time Tracking for Consultants and Professional Services
- 11. FAQ
- 12. Glossary
Taxable
How to report professional services fees on taxes
When filing taxes for professional services payments, these expenses are categorized as non-employee compensation. The IRS instructs the following payments to be reported using a 1099-NEC form: “Professional service fees, such as fees to attorneys (including corporations), accountants, architects, contractors, engineers, etc.”
Please contact a tax professional for in-depth guidance on reporting professional services fees for tax purposes.