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1099-NEC
I have a small construction business and received 2 1099-NEC this year. When I entered them into where they were suppose to be entered it ask if I have and expenses to deduct. I answered no because I only kept expenses based on the entire business not the portion of it that applied to the earnings on the 1099 NEC. When I did the business income that is where all the expenses including the vehicle expenses were deducted. Was this ok. The business income looks low and the expenses looks high.
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1099-NEC
No, this is a problem with the program design this year. You need to delete the 1099-NECs from the section they are in, create your small business first, then enter all your small business income and expenses together, including these 1099s.
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1099-NEC
No, this is a problem with the program design this year. You need to delete the 1099-NECs from the section they are in, create your small business first, then enter all your small business income and expenses together, including these 1099s.
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1099-NEC
Thanks, Do I enter the entire income in the one place or do I break it up and enter some in where I use to enter the 1099-MISC
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1099-NEC
Enter all your business income, including 1099-NEC forms, in the business section.
If you entered the 1099-NEC in the personal section of the program and checked "I have expenses for this income" that will create a schedule C. But I don't know if it will link to the existing schedule C, or if it will try and create a new schedule C for a separate business. Turbotax really changed how 1099s were entered this year and there seems to be a high likelihood that people can enter a 1099-NEC and not create a proper schedule C or pay SE tax, which will cause big headaches for those taxpayers down the road.
I know that if you enter one 1099-NEC and check the box for "I have expenses" it will create a schedule C. I haven't done any testing to see what happens if you enter another -- does it create a new Schedule C or go on the first one? But the safest thing to do is only use the business section to enter business income. And print your return and review it carefully before filing.
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1099-NEC
Great help,. Thanks!