Unfortunately, Openforce is not qualified to provide you with tax advice; however, business expenses are generally tax-deductible, and the CMS Fee is an expense that you incurred while operating your business. You’ll want to speak with a tax preparer about what constitutes a legitimate deduction.
How Openforce will populate your 1099-NEC form:
Payer: Openforce/Contractor Management Services or your contracting company will be listed in this box.
Payer TIN: The EIN for Openforce or your contracting company will be listed in this box.
Recipient’s TIN: Your SSN or EIN will be listed in this box. This is based on data you provided during enrollment in Openforce.
Account Number: Openforce will populate an internal reference number in this box. No action is required from you.
Box 1: Non-employee compensation of at least $600.
Box 4: Federal income tax withheld. If you were subject to a federal withholding during the year, then the total of the withholding will be listed in this box.
Box 5-7: State tax-specific information.
Void/Corrected: If Openforce cancels your 1099, then the Void box will be checked. If Openforce changes the Non-Employee Compensation on your 1099, then the corrected box will be checked.
For more detailed information, visit the IRS website.