If you believe your Form 1099-NEC is not correctly reported, you would need to contact your employer for a corrected version. As IRS also receives a copy of this form, it is important for you to enter the information correctly on your tax return. If you know how much you have made and if you have taken any federal taxes from the income amount, you can test it in the program to predict your refund or taxes owed, just to get an idea. ( Income amount should be in box 1 and federal tax in box 4)
Beginning with the 2020 tax year, the IRS will require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses will need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor. This was done to help clarify the separate filing deadlines on Form 1099-MISC and the new 1099-NEC form will be used starting with the 2020 tax year.
Generally, most taxpayers who receive a Form1099-NEC are considered as self employed by the IRS and required to pay self employment tax. You will need to file a Schedule C reporting both income and any related expenses. You will also need to file a Schedule SE to pay your self employment tax. If you received the form for a non-self employment income, you will enter it as Other Income on your Form 1040. Follow the prompts in the TurboTax program and it will take you there. To learn more, click here: 1099-NEC
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