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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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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:
To set up your business:
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?
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.
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