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Level 1
posted Apr 18, 2021 5:33:14 PM

Entered 1099-NEC, but didn't result in SE form

I am helping a friend with her taxes.  She received a 1099-NEC which we entered.  We answered No to the question of "No, I don't have any expenses related to this income" because she has no expenses.   When selecting this option, I notice that there are no self-employment taxes reflected in her tax return.  Is this correct?  If I enter "Yes, I have expenses to deduct", then it calculates SE taxes owed.  But, she doesn't have any expenses to deduct.  Is this a bug with TurboTax?  Will it result in incorrect taxes if she selects "No, I don't have any expenses related to this income"?  Please advise.

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3 Replies
Expert Alumni
Apr 18, 2021 6:40:39 PM

Delete your Schedule C and start over. Enter the 1099 on the Schedule C directly.

 

Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

  • Open or continue your return in TurboTax.
  • In the left menu, select Tax Tools and then Tools.
  • In the pop-up window Tool Center, choose Delete a form.
  • Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

 

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.

Level 1
Apr 18, 2021 7:53:49 PM

Thank you for this answer.  But, I'm wondering why would TurboTax allow me to enter her 1099-NEC that way?  It didn't even warn me that it was not the correct way to enter it - it just went along and would have let her continue and file her return incorrectly, leaving her vulnerable to an audit.   I suspect tens of thousands of self-employed individuals have done the same thing, and will be audited.  Am I seeing something wrong? 

Level 15
Apr 19, 2021 7:16:08 AM

There are three possible places to enter a 1099-MISC/1099-NEC in the TTX program. Where you enter it, depends on what box the income is reported in. With a 1099-NEC there's no doubt in your case, it's self-employment income. So it gets entered on SCH C. There are exceptions where the 1099-NEC could be for other than SE income though.