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Returning Member
posted Feb 16, 2021 10:59:58 AM

1099 NEC

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.

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1 Best answer
Expert Alumni
Feb 16, 2021 11:15:22 AM

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:

  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.

3 Replies
Expert Alumni
Feb 16, 2021 11:15:22 AM

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:

  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.

Returning Member
Feb 16, 2021 11:22:58 AM

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.

Expert Alumni
Feb 16, 2021 12:39:47 PM

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, 

  • Sign into your account, select Pick up where you left off
  • From the upper right menu, select Search and type in 1099nec and Enter
  • Select the Jump to 1099nec
  • Follow prompts

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