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Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

 
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7 Replies
Carl
Level 15

Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

Did you receive a 1099-MISC, 1099-NEC or record a cash payment? If so, as far as the IRS is concerned you received that money while self-employed. There are ways to report income on a 1099-MISC or NEC if it "in fact" was not self-employment income. But you need to provide more details. Basically, the program is requiring a SCH C, because as far as the program is concerned, you have reported self-employement income of some type and have not designated that income otherwise. Assuming that is, the income does not qualify as SE income.

Sometimes people are paid and the income is reported on a 1099-MISC or NEC and it "is" self-employment income. They just don't realize or understand that.

 

 

Ktstamey
Returning Member

Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

I received a 1099 NEC from my employer due to COVID for $1,000.  How do I report this.

Ktstamey
Returning Member

Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

How do I report the 1099 NEC so that it doesn't think it is for self employment.  I received this due to COVID.

AamilD
Expert Alumni

Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

@Ktstamey

 

 

It is possible that you may be entering 1099-NEC under the Self-Employment Section and hence it is assuming you are a business owner. Please follow the steps below to input 1099-NEC through a different method:

  1. Click on Tax Home from the Left Side Menu.
  2. Click on Income & Expenses on the main screen.
  3. Scroll down till you see the section for Other Common Income. Within this section, click on 1099- NEC and fill the relevant info.
Ktstamey
Returning Member

Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

Thanks

Ktstamey
Returning Member

Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

Sorry, but I don't have a menu on the left side.  I looked at the tool bar at the top and can't find Tax Home or Income & Expenses.  Can you tell me where to find this?

 

DawnC
Employee Tax Expert

Why am i being asked to complete the Sch C Wks worksheet if I did not do any work as an independent contractor in 2020?

If you are trying to enter a 1099 as Other Income in the desktop program, you need to click on Personal or Federal Taxes (depending on your version) at the top menu.   Click Continue and then choose I'll choose what I work on.    Scroll down to the 1099-MISC and Other Common Info section - It may just say Other Common Income.    Then click START next to the line item Income from 1099-NEC.

 

However, if you received that from an employer, it will be reported as Self-Employment income.  Your employer should have put that income on your W-2, but since they didn't, it gets reported as self-employment on Schedule C.   Enter your 1099-NEC in the above spot and TurboTax will do that for you.  

 

 

 

 

 

@Ktstamey

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