1099-NEC Income

[amla809]

In addition to my regular W-2 income, I do some consulting work, for which I received a 1099-NEC. I did my taxes using turbotax and I noticed that the income from the 1099-NEC was added to schedule C and the income was added as if I'm the sole proprietor of this business. This is not my business. I also purchased a house and needed to provide my tax return for my application, and now they are asking me for profit and loss statements, as well as a business tax return for "my business". Do I need to file an amended tax return to correct the fact that the income from the consulting work is contractor income and not a sole proprietorship? Is this something that turbotax can help with?

[SharonD007]

Your income from Form 1099-NEC is correctly reported on Schedule C.  The IRS considers this contract income as self-employment income. The good thing is that you'll be able to deduct reasonable and customary business expenses from that income.

You can amend your taxes if you want to add expenses that you incurred while working as a contractor. Refer to the TurboTax article What is a 1099-NEC?What is the self-employment tax? for more information.

For additional information, refer to the TurboTax Help articles How to File Taxes with IRS Form 1099-NEC, Reporting Self-Employment Business Income and Deductions, and What self-employed expenses can I deduct?

[amla809]

Will the actual owner of the business encounter issues with their business being listed as mine on my tax return?

[VolvoGirl]

No.  The 1099NEC is from his business to your business.  Yes you are the owner of your own self employment business.  You are in business for yourself.  Use your own info.  The people or company that pays you is your customer or client.  You need to fill out schedule C for self employment business income.  You are considered to have your own business for it.  YOU are the business.

Actually I would just enter your total income as Other self employment income or as Cash or General income.  You don't need to get a 1099NEC or 1099Misc or 1099K.  Even if you did you can enter all your income as Cash.  Only the total goes to schedule C.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

[SharonD007]

No, you are considered owner of a sole proprietorship business and your contract income is reported on your business return which is the Schedule C.  The 1099-NEC is issued from the other parties business.

Refer to the TurboTax articles Beginner's Guide to Sole Proprietorship Taxes and Tax Tips for Sole Proprietors for more information.

@amla809