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New Member
posted Feb 25, 2021 7:52:54 PM

I am an employee for a large company. One of our vendors gave $ each time I sold their product & it added up to $825. I do not know how to complete in Turbo Tax.

How to complete self employed 1099-NEC?

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2 Replies
Expert Alumni
Feb 25, 2021 8:48:26 PM

You will need to enter the information in both Form 1099-NEC and Schedule C sections.  You would start from the 1099-NEC section under "1099-MISC and Other Common Income".  You would then follow prompts to tell the program you are filing a Schedule C.  As it creates a Schedule C for you, you will need to go to the Schedule C portion separately to confirm your income amount, add related expenses and complete required information. 

 

In TurboTax online, here are the steps: 

  • 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 to complete the section

Then 

  • From the upper right menu, select Search and type in schedule c and Enter
  • Select the Jump to schedule c
  • Next screen, "Your 2020 work summary" under your self employed business, select Review
  • Continue to enter related expenses and other required information

 

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. This will show on line 8 of your Schedule 1 and Form 1040.

Level 15
Feb 26, 2021 10:12:34 AM

Did you actually receive a 1099-NEC?

 

At first glance, this appears it may be a "spiff" that is NOT subject to Self Employment tax.