reporting 1099-NEC as independent contractor

[jsspbusiness]

My daughter received a 1099-NEC for teaching music lessons at a conservatory, she also taught private lessons for cash and reported that as self-employed income. Both produced Schedule C forms. When reporting the 1099-NEC income, turbotax wants information about the payee but then asks questions about the business address and business code ( It doesn't seem to like the 611000 code we have used for other private lessons in a different income source). Do we enter the address of the conservatory as the business address even though that is obviously not the address of her self-employed business, only the address of the payee.

[Vanessa A]

You can use her home address for the business address.  

The NAICS Code you are entering is a valid code, when you say it does not like it what it is doing?

[jsspbusiness]

The display shows red around the box but seems to put it into the worksheet when looking at the forms.

So we can use the home address even though the conservatory is the payer and has a TIN that is reported when first entering the 1099 info?

[VolvoGirl · Accepted solution]

Did you fill out 2 schedule C forms?  You only needed to do 1 schedule C for all her music teaching.  I would delete one and add it to the other sch C.  

When you are self employed you are in business for yourself.   Use your own info and address etc.  The people or company that pays you is your customer or client.

And actually you can just enter it as Other self employment income or as Cash or General income. You don't need to get a 1099MISC, 1099NEC or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C. You should be entering the income from your own records.

[KrisD15 · Accepted solution]

Let's first clarify something, are you saying that she is filing two separate Schedule C's on her return? 

If she gives music lessons, there show only be a need for one Schedule C.

@jsspbusiness 

[jsspbusiness]

Turbotax created the second Sched C after I entered the 1099-NEC information. 

I suppose as long as the income is reported the IRS will accept it, unless they are looking for something that matches the 1099 info; like the payers information. 

I do see line 1b of the Sched C for the lessons that were cash only, and it does mention income from a 1099-NEC. 

What happens if I manually delete the second Sched C for the 1099 reporting? Does the reporting of the 1099 itself get removed?

[jsspbusiness]

I removed the second Schedule C and linked the 1099-NEC to the first Schedule C and the amount was copied to line 1b so all seems to be reported correctly.

I am using the Premier product, I suspect if we upgraded to the SelfEmployed version that this would have been handled correctly.

[KrisD15]

Yes, that is the proper way to report the cash income as well as the 1099-NEC.

Thank you for using TurboTax. 

[VolvoGirl]

Lines 1a-1f are only for Turbo Tax to help you enter the income.   Only the total on 1g goes to Schedule C line 1.  And actually 1b is for 1099NEC and 1a is for gross receipts not reported on a 1099NEC.   Are you using the Online version or the Desktop installed program?  

As long as the total income on Schedule C is the same or more than all the 1099NEC forms it's ok.   Yes if you delete the second Schedule C you will need to add the amount to the other schedule C.