DianeW777
Expert Alumni

Get your taxes done using TurboTax

No, you are not missing anything. In 2024, the same prompt would have occurred unless the reporting form was not a 1099-NEC. If you received a Form 1099-MISC, depending on how you answered the questions you may not have been prompted. You can review your 2024 return to see how you included it. If you did pay self employment tax you will see Schedule SE in your tax file.

 

Keep the 1099-NEC in your tax file, do not enter the form itself if you agree with @CesarJ . This form is considered used for self employment or independent contractor and may not be the one that should be used in your situation. 

 

Note: You can decide if it is hobby or business income.  This IRS link will help you: Business or Hobby?

 

Key elements:

  1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
  2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.

For Hobby report as indicated above and here:

Other Miscellaneous Income:

  1. Go to the Wages and Income  section of TurboTax
  2. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
  3. Select Hobby Income and ExpenseEnter the income

For Self Employment enter the 1099-NEC and use the information below.

If you are using TurboTax Desktop or TurboTax Online you can use the steps below:

  1. Search function in the upper right and type Schedule C. Click on the Jump to.. link
  2. This will bring you to the screen 'Here's the business info we have so far'. 
  3. Select Edit beside your business and then scroll to Business Expenses, Assets, etc. to begin your entry.

@user17713498320 

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