If you have received an IRS form 1099-NEC, the IRS presumes that the income is subject to self-employment income as well as income tax.
The software wants you to establish a self-employment activity in Schedule C. Then deposit the IRS form 1099-NEC income into the self-employment activity.
The question above is one of the questions that the software asks as it establishes a self-employment activity.
To report income and expense under Self-employment income, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click on the drop down arrow to the right of Self-employment.
- Click to the right of Self-employment income and expenses.
- At the screen Your 2025 self-employed work summary, click the pencil icon to enter the self-employment activity.
- Answer the questions to establish the self-employment activity and report the income and expense.
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