I am trying to enter 1099 nec on line 8 of schedule 1(form 1040) additional income per IRS instructions I am neither employeed or self-employed

[marketfan53]

I have Turbo Tax Deluxe 2021 and am trying to enter 1099 NEC on line 8 of schedule 1 as described above.  I did a one time job and am not self employed.  Would this be entered under Miscellaneous Income (even though the 1099 NEC is not listed?

[ThomasM125]

Based on your description, you may be able to reported it as other miscellaneous income, as opposed to self-employment income.

You should enter your form 1099-NEC in the Other Common Income section of TurboTax and then Income from form 1099-NEC. The income will be taxed appropriately based on your answer to questions in that section. You will see a screen that says Does one of these uncommon situations apply? If you check the question that says This in not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby, it will appear as miscellaneous income on your tax return.

@marketfan53

[marketfan53]

When I tried this, Turbo Tax pulled up a schedule C. And asked questions about my business...any suggestions?

[KrisD15]

The IRS resurrected Form 1099-NEC (Non-Employee Compensation) to make it clear when income is being paid as Self-Employment income.

You can enter the amount as "Other Income" and bypass Self-Employment tax HOWEVER the IRS most likely WILL view this as Self-Employment income because, as you say, you did a "one time job".  No matter how many jobs you did, if the intent was to earn income, and you did not have an employer, you are responsible to act as the employer (as self-employed). In this capacity, you are responsible to pay the FICA (Social Security) tax that normally is withheld and submitted by an employer. 

When income is clearly not self-employment income, the payer should use 1099-MISC. 

Income not reported on a W-2 and also is not Self-Employment income would include things such as prize money and hobby income. 

@marketfan53

[Smx3h1995]

I followed this and after I selected none of these apply to me for the uncommon situations it took me directly to the New Business page to start schedule C  ugh....

[LeonardS]

Generally, if you received  Form 1099-NEC you are self-employed and you will report your 1099-NEC income on Schedule C. 

To enter your 1099-NEC on Schedule C follow these steps:

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?
4. If you've already entered self-employment work and need to enter more, select Add another line of work
5. Follow the on-screen instructions to add your, 1099-NEC,  self-employment information.

[brittanyrose920]

Per the IRS website, "If you're not an employee of the payer, and you're not in a self-employed trade or business, you should report the income on line 8j of Schedule 1 (Form 1040), Additional Income and Adjustments to Income and any allowable expenses on Schedule A (Form 1040), Itemized Deductions. Refer to Not for Profit Activities in Chapter 1 of Publication 535, Business Expenses for allowable nonbusiness expenses."

That's exactly my situation.  The money listed on my 1099-NEC was "Activity not engaged in for profit income" and I'd like Turbotax to populate 8j on my 1040.  I just can't figure out what trail to follow.  And if I list it as 8z income, I can't find a way to fill out the box for the type of income.  From what I can tell, it won't change my tax situation (all line 8 income goes to the same place?), but I'd still like TurboTax to file my information correctly.  I tried to get help with an agent, but she couldn't tell me how to populate box 8j.  

[PatriciaV]

You may enter this income in TurboTax under the Form 1099-NEC topic of Wages & Income. On the page "Does one of these uncommon situations apply?" check the box for "This is...sporadic activity." The income you report here will appear on Line 8j of Form 1040.

@brittanyrose920 

[brittanyrose920]

When I follow those steps, it goes to 8z instead of 8j.  At least this time it listed the type of income!  I'm not sure why Turbotax doesn't offer additional options to populate 8j instead of 8z, but like I said, it doesn't appear to change my tax situation whether it's listed in 8j or 8z.  I'd just prefer to put it where the IRS told me to, instead of letting Turbotax decide it's 8z.  

[Ron133]

I entered my 1099 NEC as business income as I'm an independent contractor. DO I also need to enter it as personal income?

[DoninGA]

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@Ron133 wrote:

I entered my 1099 NEC as business income as I'm an independent contractor. DO I also need to enter it as personal income?

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No.  You do not enter the same amount again as personal income if you have already reported it as self-employment income.

[yellowwidget]

@brittanyrose920  Same, so what was the solution please?

"When I follow those steps, it goes to 8z instead of 8j. At least this time it listed the type of income! I'm not sure why Turbotax doesn't offer additional options to populate 8j instead of 8z, but like I said, it doesn't appear to change my tax situation whether it's listed in 8j or 8z. I'd just prefer to put it where the IRS told me to, instead of letting Turbotax decide it's 8z. "

[Cynthiad66]

If you're not an employee of the payer, and you're not in a self-employed trade or business, you should report the income on line 8j of Schedule 1 (Form 1040), 

8z is just Other income.  Either one should not affect the taxes differently.

@yellowwidget  

[brittanyrose920]

@yellowwidget I haven’t done my taxes yet this year to see if they’ve fixed it, but it wasn’t an issue to do it this way when I filed my taxes last year.  I just found it annoying that I dug down into the IRS documents, found exactly my situation (which goes in 8j), and then TurboTax won’t let me put it in properly.   

[AbrahamT]

Just to verify , did you receive this "Other income" through a form NEC. or just as miscellaneous other income?" 

Depending on how you received this income will make a difference as to where you input this 

information in TurboTax which will ultimately end up on line 8j on your form 1040 pg. 1.