I have a small construction business and received 2 1099-NEC this year. When I entered them into where they were suppose to be entered it ask if I have and expenses to deduct. I answered no because I only kept expenses based on the entire business not the portion of it that applied to the earnings on the 1099 NEC. When I did the business income that is where all the expenses including the vehicle expenses were deducted. Was this ok. The business income looks low and the expenses looks high.
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No, this is a problem with the program design this year. You need to delete the 1099-NECs from the section they are in, create your small business first, then enter all your small business income and expenses together, including these 1099s.
No, this is a problem with the program design this year. You need to delete the 1099-NECs from the section they are in, create your small business first, then enter all your small business income and expenses together, including these 1099s.
Thanks, Do I enter the entire income in the one place or do I break it up and enter some in where I use to enter the 1099-MISC
Enter all your business income, including 1099-NEC forms, in the business section.
If you entered the 1099-NEC in the personal section of the program and checked "I have expenses for this income" that will create a schedule C. But I don't know if it will link to the existing schedule C, or if it will try and create a new schedule C for a separate business. Turbotax really changed how 1099s were entered this year and there seems to be a high likelihood that people can enter a 1099-NEC and not create a proper schedule C or pay SE tax, which will cause big headaches for those taxpayers down the road.
I know that if you enter one 1099-NEC and check the box for "I have expenses" it will create a schedule C. I haven't done any testing to see what happens if you enter another -- does it create a new Schedule C or go on the first one? But the safest thing to do is only use the business section to enter business income. And print your return and review it carefully before filing.
Great help,. Thanks!
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