My spouse received a 1099-NEC for doing some contract work. The form says to file a 1096. Is there a way to file that through TurboTax?
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In TurboTax Self-employed Online, I entered an IRS form 1099-NEC by following these steps:
The person who issues the 1099-NEC uses the 1096 as a transmittal for when sending the forms to the IRS. Your spouse would only file a 1096 if she is giving 1099-NECs to people she paid through her self-employment.
Ok makes sense. What would be the best method for my spouse to report her income. We're filling jointly.
In TurboTax Self-employed Online, I entered an IRS form 1099-NEC by following these steps:
Ok thank you for all the help!
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.
How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.
Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
1040 Schedule C Instructions
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf
This is great information! According to this she needs to pay $710, however TurboTax was showing over 2K. I hope this can break it down and show me why the huge difference.
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