1099 NEC schedule c section?
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futtusito
New Member

1099 NEC schedule c section?

 
3 Replies
AnnetteB6
Employee Tax Expert

1099 NEC schedule c section?

If your return does not include a Schedule C, then that is the problem that TurboTax is trying to get you to fix.  

 

Income reported on Form 1099-NEC is not reportable directly on your tax return.  Just entering the information on that form is only the first step.  Since it is self-employment or 'non-employee compensation' it must be associated with a Schedule C, even if there are no expenses being claimed. 

 

The information required for the Schedule C will include the type of business, the business name (or your name if there is no specific business name), the business address (or your address), etc.

 

That being said, there is a known issue when using TurboTax Online that is related to the program asking you to double-click to link to Schedule C.  Take a look at the TurboTax article below and use the link in the article to enter your email address to be notified once this is resolved.  

 

Why can't I link my 1099-NEC in TurboTax Online?

 

Alternatively, take a look at the additional information below for a possible series of steps to solve the issue.  

 

Since income reported on Form 1099-NEC needs to be reported on Schedule C, the program is trying to tie these two forms together to be sure that it is reported correctly and on the right form.

 

Try going back to the section where you entered the Form 1099-NEC if you entered it on its own and delete that entry.  Use these steps:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-NEC” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-NEC
  • Click on the blue “Jump to 1099-NEC” link

This will bring you to the summary of all Form 1099-NEC that you have entered.  Click Delete or the trash can icon next to each one.

 

Next, you will re-enter the Form 1099-NEC as part of the Schedule C so that the income is reported directly as part of your Business Income and Expenses and within the correct form and section of your return.

 

Use these steps to go to the Schedule C section of your return.  

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “schedule c” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to schedule c
  • Click on the blue “Jump to schedule c” link

If you already have a Schedule C in your return, edit it and go to the section to Add Income.  This is where you will re-enter the Form 1099-NEC. 

 

If you do not already have a Schedule C in your return, follow the prompts and enter the information about your work/business for which you received the Form 1099-NEC.  Then continue through that section to Add Income and enter the Form 1099-NEC plus any other income you received for that self-employed business.  

 

Don't forget you can also claim expenses related to your business.

 

After you are finished, the error condition should be eliminated. 

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Jldh
New Member

1099 NEC schedule c section?

It’s really confusing 

AnnetteB6
Employee Tax Expert

1099 NEC schedule c section?

Some things in TurboTax are not quite working the way they should right now and that is adding to the confusion.  

 

If you have a Form 1099-NEC that is reporting Non-Employee Compensation, then you need to enter that income on Schedule C.  Schedule C will report the details about what kind of work you performed to earn that income.  

 

Your first step in your return should be to create the Schedule C (if you don't already have a business established from your prior year return).  then, enter the information from your Form 1099-NEC as part of the Income section inside the Schedule C.  

 

This will simplify the process and reduce the chances that you will see some sort of error from TurboTax as you try to complete your return.

 

To set up your business on Schedule C:

  1. Open or continue your return.
  2. Search for schedule c and click the Jump to link in the search results.
  3. Answer Yes to Did you have any self-employment income or expenses?
    • If you've already entered self-employment work and need to enter more, select Add another line of work.
  4. Follow the onscreen instructions.

 

@Jldh

 

 

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