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Get your taxes done using TurboTax
First, you need to determine if you truly were an employee or if you were an independent contractor. Wages paid as an employee are reported on Form W-2 and employment taxes are withheld from every paycheck. Independent Contractors are paid a gross amount, with no taxes withheld, and are considered to be self-employed.
See this IRS article for more help: Independent Contractor (Self-Employed) or Employee?
If you believe you were an employee and the employer should have reported this income as wages on a W-2, you may wish to contact your employer to have this oversight corrected. It's possible that you will be unsuccessful in this attempt.
As an independent contractor, you would report the information from Form 1099-NEC as self-employment income on Schedule C. This income is subject to income tax and self-employment taxes. To find Schedule C in TurboTax Online, go to Tax Tools in the left column >> Tools >> Topic Search. Type in "sch c", then click the topic in the list and then GO to go directly to the start of that section.
Otherwise, to enter the 1099-NEC as wages, begin with Wages & Income >> 1099-MISC and Other Common Income >> Income from Form 1099-NEC.
- Add the employer and income information from the 1099-NEC.
- Enter "Wages reported on Form 1099-NEC" as the reason.
- Under "Does one of these uncommon situations apply?" check the box for "Taxpayer's employer reported this extra money on a 1099-NEC but it should have been reported on a W-2."
- In most cases, you have NOT filed Form 8919 or Form SS-8. Follow the prompts and TurboTax will prepare these forms for you.
- Note that you will owe Social Security and Medicare on these wages since your employer did not withhold them for you.
By filing Form SS-8, you are asking the IRS to determine if you were an employee or an independent contractor. Read more here: About Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income ...
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