1099-NEC

[mtkasper]

Hi I worked for a very short time for a credit card processing company selling their services to businesses.  I got paid a total of 1250.00.  I received form 1099-NEC and I'm having trouble with some errors related to schedule C.  It is asking questions as if this was a business such as qual business Inc yes or no.  I have no idea what that is. 

I wish I had not made the money just need to get this entered and corrected. 

[ErnieS0 · Accepted solution]

Yes. You are a qualified business. IRS allows taxpayers to deduct up to 20 percent of their qualified business income (QBI) on their tax return.

Qualified trade or businesses are businesses except a trade or business conducted by a C corporation or performing services as an employee (you were an independent contractor).

Facts About the Qualified Business Income Deduction

[mtkasper]

thank you for the answer but still don't understand some of the items for example what kind of accounting method did I use cash, accrual or other.  Are we talking expenses the only thing it cost me was gas and wear and tear of my vehicle. 

[ErnieS0]

Your accounting method is cash. It’s an accounting rule that means you only count income when you receive it and only claim deductions when you spend money. 

This is the most common form of accounting for gig workers because they don’t have guaranteed (accrued) contracts.