Since you received the 1099-MISC, 1099-NEC or 1099-K (1099-Form) you will need to enter it into your tax return. If the IRS audits your return, you can show them the situation. You can enter the 1099-Form in the 1099 section and you can enter it in the area where you are subtracting expenses.
Follow these steps:
First enter the income:
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go to the federal income section
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scroll to the bottom
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Miscellaneous Income, 1099-A, 1099-C, Start
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Scroll to the bottom
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Other reportable income, Start
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Other taxable income?
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Select YES
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Description 1099-Form, box 3
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Amount, enter your amount, $$$$$
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continue
Subtract expenses
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Miscellaneous Income, 1099-A, 1099-C, Start
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Scroll to the bottom
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Other reportable income, Start
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Other taxable income?
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Select YES
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Description 1099-Form expenses
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Amount, enter your amount, must be less than or equal to the amount on the 1099-Form as a negative, -$$$$
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continue
