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rickw333
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1099 NEC

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.  

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‎February 16, 2021 12:05 PM
last updated ‎February 16, 2021 12:05 PM
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JohnB5677
Expert Alumni
Expert Alumni

1099 NEC

It is not necessarily better, but it's more a mater of what is correct.

 

The 1099-NEC is used to report independent contractor income. The 1099-MISC is used to report miscellaneous income such as rent or payments to an attorney.

 

If you post the 1099-MISC under  Other Common Income the program will determine if it is taxable, and if it is subject to self-employment tax.

 

A 1099-NEC typically will be taxable and subject to self-employment tax.  The 1099-NEC should be posted to Self-Employed.

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‎February 16, 2021 12:34 PM
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JohnB5677
Expert Alumni
Expert Alumni

1099 NEC

It is not necessarily better, but it's more a mater of what is correct.

 

The 1099-NEC is used to report independent contractor income. The 1099-MISC is used to report miscellaneous income such as rent or payments to an attorney.

 

If you post the 1099-MISC under  Other Common Income the program will determine if it is taxable, and if it is subject to self-employment tax.

 

A 1099-NEC typically will be taxable and subject to self-employment tax.  The 1099-NEC should be posted to Self-Employed.

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‎February 16, 2021 12:34 PM
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