Folks-I have a small consulting firm (just myself) in which I received a 1099-MISC (2020) from a firm I do work for. The 1099 has Box 7 Non Employee Compensation as $ 15447, of which no taxes are withheld. I pay quarterly estimated taxes. My question is where do I enter the 15447 when I'm trying to enter the 1099. Would it be "Other Income" ? There is no Box 7 when entering info in the 1099 MISC pop up screen. Any suggestions would be greatly appreciated!!! Thanks in advance for responses!!
You will enter your income in Self employment income and expenses.
Form 1099 NEC replaced Form 1099 MISC for non employee compensation this year. In TurboTax you can enter the amount in Box 7 of your Form 1099 MISC in Box 1 of Form 1099 NEC:
A couple of items to note here:
- The firm that issued you a 1099-MISC issued you the wrong form. They should have issued you a 1099-NEC.
- The reason there is no box 7 in TT, is because there is nothing in box 7 on the form 1099-MISC other than possibly an "X".
- If you have something in box 7 on your 1099-MISC, then not only did the firm issue an incorrect form, they most likely issued a wrong year form. The 2019 form had something in box 7, but not the 2020 form.
- So bottom line, based on your facts, you were issued an incorrect tax form and the tax form issued doesn't appear to be the correct tax year.
- You should have the firm issue you a correct form 1099-NEC and also a corrected form 1099-MISC that voids what was originally issued. Both of these are for your protection. You will be the one that has to deal with the IRS when you receive any matching notices.
- I would not follow @JeffreyR77 advice until you get the corrected forms as noted above. Following that advice without the firm issuing the correct forms will only lead to confusion on the part of the IRS and notices to you.