1099 - Misc

[Bill W]

Why will Turbo Tax Home & Business 2020 not permit me to load my 2020 1099-MISC income?

[AmeliesUncle]

It will.

But if you are an Independent Contractor who received "Nonemployee Compensation", that is no longer on the 1099-MISC.  That is now on the 1099-NEC.

[kes59]

I ran into the exact same issue.  How are we suppose to report income on a 1099-NEC?  Is it considered general income or do we need to wait for an update to TurboTax?

[macuser_22]

There will be many updated to TurboTax as forms become available.   Most people will not even receive the 1099-NEC until after Jan 31.   By then TurboTax should be updated.    Do not be in a hurry.

[AmeliesUncle]

There has never been a need to enter a 1099-MISC or 1099-NEC into the software.  Just report it as income.  Entering the 1099 is just extra work that does not affect anything.

[macuser_22]

If self-employed incime then it goes on Schedule C that is scheduled for the Jan 7 update.

[Critter-3]

[Mike9241]

even though TT will open earlier for submission, it won't be sent to the IRS until the IRS opens e-filing in late January.

if you are using the interview method -  ie step-by-step mode it's best to wait for the update.  if not, and you have forms mode available you can skip entering the 1099-NEC which is only for your use. it's not sent to the IRS. you would total all your gross receipts and enter them directly in the schedule C worksheet. 

[macuser_22]

The IRS has not announced when 2020 tax filing will start in 2021 - probably around Jan 27 - last year it was late January.

Although TurboTax will be accepting some e-filed returns early they will NOT be e-filed to the IRS which will not process any return until they open for e-fileing. TurboTax stores those returns filed early until the IRS opens for business, only then will you get an e-mail telling you if the return was accepted or rejected by the IRS.

Only the simplest returns can be transmitted to TurboTax early. Some forms will not be finalized until late Jan. and some later then that.

https://ttlc.intuit.com/questions/1908854-forms-availability-table-for-turbotax-federal-products-exc...

Why does TurboTax allow early filing? Because their competitors do - It is a marketing ploy.

Filing early with TurboTax before the IRS opens is a really BAD IDEA.

1) If you discover something that is wrong on your return, receive a W-2 that is different, receive some other tax document that was not on the return that you filed then there is NOTHING that you can do about it other than wait to see if the IRS accepts or rejects the return after they open. If rejected you can correct and file again, but if accepted then the only remedy is to amend which can take 4 months to process.

2) You must remember to check back after the IRS opens (or check for an e-mail) to confirm that the IRS has accepted or rejected the return. If rejected, then it was never filed at all and must be corrected and re-filed. Every year many taxpayers that file early, forget to check back and only discover months later that they never actually filed because if was rejected by the IRS but they had forgotten about checking back after filing with TurboTax.

3) While the IRS does conduct some per-opening polling tests and does accept some returns early, they will not process those until after the official opening. There is a reason to test and that is to discover any problems with it's systems. A couple of years ago a test went bad and several thousand "test" returns were lost. The IRS was able to recover those but it delayed refunds for some by months.

There is no real advantage to file before the IRS opens but there are several disadvantages to do so.

[mfjung]

the 1099 Misc has been changed to 1099 NEC (non-employee compensation).  Where is the 1099 NEC on turbo tax 2020?

[Critter-3]

It will be in the same place as the 1099 misc used to be. So if you're self-employed go to the schedule c input area and when you reach the income entry area you will see it.