I recieved a 1099 NEC for 2020. If i enter it under the "OTHER INCOME" section where it says to enter it, do i still have to enter that amount later in the BUSINESS INCOME and EXPENSE section? The income was for freelance work as a recruiter.
This is not Other Income. You earned this money by performing labor. Enter it only as non-employee compensation on Schedule C.
To set up your business:
This is not Other Income. You earned this money by performing labor. Enter it only as non-employee compensation on Schedule C.
To set up your business:
I am curious as to why in the turbo tax deluxe program it says " Before you say "yes" if you have 1099 MISCs or 1099 NECs, its better to enter them under 1099 MISC and Other Common Income.
As a freelancer, you are considered as self employed. You would need to file a Schedule C. You do not report it under Other Income. To enter your 1099-NEC, here are the steps:
In TurboTax online,
Generally, most taxpayers who receive a Form1099-NEC are considered as self employed by the IRS and required to pay self-employment tax. You will need to file a Schedule C reporting both income and any related expenses. You will also need to file a Schedule SE to pay your self-employment tax. If you received the form for a non-self employment income, you will enter it as Other Income on your Form 1040. Follow the prompts in the TurboTax program and it will take you there. To learn more, click here: 1099-NEC