1099-MISC or 1099-NEC?

[mouyang1]

Please help! I rent out my 2nd home via a property manager. The rent is paid to me monthly by tenant, and I pay my property manager monthly. I read somewhere that I should issue 1099-MISC for the amount I paid in 2020 for PROPERTY MANAGEMENT. However, when I was about to efile 1099-MISC at the Intuit website, I realized that the property manager's name was listed as an employee on the list of 1099 forms. Should I efile form 1099-NEC instead? Thanks in advance!

[cas15531]

I have received a few 1099 NEC's from companies that i do part time business with.  However, I do not see anywhere in the Income section of TurboTax where I can enter this income; only 1099 MISC.  Am i missing something or has TurboTax just not updated this yet?  Thank you.

[cas15531]

I"m sorry.  i didn't mean to reply to the previous message.  I just have my own question.

[ThomasM125 · Accepted solution]

@mouyang1 You should file form 1099-NEC to report the payments to your property manager since you are not reporting rent, you are reporting payment for services.

[ThomasM125]

@cas15531 You need to enter your information from form 1099-NEC in the Self-employed income and expenses section of TurboTax, which you'll find in the Federal area under Income & Expenses. 

[cas15531]

I know, but there is no place in self employed income to enter 1099 NEC information.  Could you tell me where to find this?  Thanks.

[AmyC]

The IRS vs the program. Here is how to win. Go to your Business Income. It says Forms 1099-MISC, 1099-K, gross receipts, sales. Click there to start or update. The next screen shows the 1099-NEC, 1099-MISC and the rest of the options. The cash is reported under general business income this year. So many changes. 

The 1099-NEC is for each person to whom the taxpayer has paid at least $600 during the course of a business for the following.

•Services performed by someone who is not an employee, including parts and materials (box 1),

•Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish (box 1), or

•Payments to an attorney for legal services (box 1).

The Form 1099-MISC is for each person to whom the taxpayer has paid the following during the course of a trade or business.

•At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest,

•At least $600 in rents (box 1), prizes and awards (box 3), other income payments (box 3), the cash paid from a notional principal contract to an individual, partnership, or estate (box 3), any fishing boat proceeds (box 5), medical and health care payments (box 6), crop insurance proceeds (box 9), payments to an attorney (box 10), IRC section 409A deferrals (box 12), or nonqualified deferred compensation (box 14).

•Any payment from which federal income tax has been withheld (box 4) under the backup withholding rules

@cas15531

[llow1231]

I received a 10099-NEC.  When I go to enter it... is says "Did you receive for this farm reported to you on Form 1099-NEC"   I answer "no" because I didn't receive this because of a Farm.   It just closes the UI.   When I say "yes" I can enter the information.  It appears you need to update this verbiage.   Thanks

[LenaH]

If you would like to enter your 1099-NEC, you may use this shortcut in TurboTax to get to the right page: 

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Click Add a 1099-NEC.
5. Enter the information as shown on your form. 
6. Follow the on-screen instructions. 

@llow1231

[Shepard Stone]

The guidance worked. Thank you.

Recommend that the Program enable entering amounts without requiring this work around (like with other pages).

[Randyob]

How to report income to IRS?

[LenaH]

You report income to the IRS through your tax return. 

To enter your 1099-NEC and report this income, you may use this shortcut in TurboTax: 

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Click Add a 1099-NEC.
5. Enter the information as shown on your form. 
6. Follow the on-screen instructions. 

After you enter your 1099-NEC, it should flow through to your Schedule C. However, you will still need to enter any expenses related to your 1099-NEC income in the Schedule C section.  

To get to your Schedule C, you may use the following shortcut in TurboTax:

1. Open your return.
2. Search for Sch C with the magnifying glass tool at the top of the page.
3. Click on the Jump to Sch C link at the top of the search results. 
4. On the page titled Your 2020 self-employed work summary, you should see your 1099-NEC listed.
5. Click review next to the income from your 1099-NEC. 
6. Follow the on-screen instructions on the following pages. 

@Randyob

[Shepard Stone]

Thank you!

[dyarus]

on the 1099NEC section.  It asks if "Did you receive income for this Farm reported to you on Form 1099-NEC?  Should this have said Form instead of Farm.  Please advsie?  Thanks

[npierson7]

It means Farm as a business. For some reason it considers  your 1099-NEC income as part of your Schedule F (Farm income), not a Schedule C (business or independent contractor's income) . Can you please verify your entries to make sure you don't have Schedule F there, if you don't have the farm income.