1099 NEC

[Vivianlorenzo9]

Will it be an issue with IRS if you report it as Other Income since they have a copy of 1099 NEC from the payer?

[AnnetteB6]

As long as the income reported on the Form 1099-NEC does not represent self-employment income, but is some other form of taxable income, then it can be listed as Other Income.  That way, the IRS can see that the income has been reported on your return.

If it represents self-employment income it should be reported on Schedule C so that self-employment tax can be included if applicable.

[Vivianlorenzo9]

Last year I reported 1099 NEC as self employment income because I didn't know how to report it as Other income, ended up with schedule C and paid SE tax. Should I amend my 2023 tax return to correct that mistake before filing my 2024 tax return?

[DaveF1006]

Yes, you should amend your 2023 return, but it isn't necessary to amend before filing your 2024 return because the amendment will take a minimum of 6-8 weeks to process.

@Vivianlorenzo9 

[Vivianlorenzo9]

Thanks! Should I decide not to amend, looks like around $250 that IRS has to refund me, will that be a problem? Just thinking about the hassle and the wait.

[Vanessa A]

It is always best to amend your returns when your tax liability and income are not accurately reported.  So, if you are due a refund of $250, it would be a good idea to amend your return.  

Since you are due a refund, there would not be a penalty if you did not amend. 

[Vivianlorenzo9]

Ok thank you! Just verifying one more time, I would enter that income under Other income ( awards, etc) and not through the 1099 NEC portion. It will show on 1040 line 8 and schedule 1 line 8z.

[MayaD · Accepted solution]

Correct. 

1. In the income section, scroll down to Miscellaneous Income, 1099-A, 1099-C under Less Common Income. 
2. On the following screen scroll down to Other Reportable Income.
3. Enter The description and amount 

The amount will show as other income on Schedule 1 Line 8z