Misc 1099

[Janet13]

I received this form for contract nursing. I don't have a business established. I am being asked to provide a Principle business code and I am not sure what this mean. 

[MayaD]

When you receive a 1099 Misc you are considered as self employed and you are operating a business. TurboTax will ask for your business name and address and the Business code.

The principle business code is a six digit code that corresponds to the type of work you perform. 

You can use code 623000 - Nursing & residential care facilities

[Janet13]

My next hang up with this is the 2106 Form. I don't know how to respond to the expense type. I don't know if I should choose fee basis state/local gov or Misc 2% itemized (state).

Thank you

[DawnC · Accepted solution]

Choose Misc 2% itemized.  But you should only be entering expenses related to your W-2 work in that section (Form 2106). 

I see above that you were originally asking about self-employment income from a 1099-MISC.  If the expenses you are entering on the 2106 form are related to your self-employment income, those expenses should be reported on Schedule C with that income.  Those expenses are fully deductible.  The ones are Form 2106 are not.  You get a bigger tax break by reporting them on Schedule C.   Only employee (W-2 work) expenses go on Form 2106 and those are not deductible on federal returns.  

Where do I enter my self-employment business expenses, like home office, vehicle mileage, and suppli...   -   Use this link for instructions for reporting expenses related to your 1099 income.