If you received the Form 1099-NEC for a non-employee compensation, IRS requires you to file as a self employed and pay self employment taxes. You will need to enter information in both 1099-NEC and Schedule C section. If this form does not apply to you, you will need to delete both 1099-NEC and Schedule C if you have entered one.
To enter 1099-NEC, here are the steps:
- Sign into your account, select Pick up where you left off
- From the upper right menu, select Search and type in 1099nec and Enter
- Select the Jump to 1099nec
- Follow prompts
To enter Schedule C, follow here:
- At the right upper corner, in the search box, type in schedule c and Enter
- Select Jump to schedule c
- Follow prompts
One of the most common reasons you’d receive tax form 1099-NEC (Form 1099-MISC in prior years) is if you're self-employed or did work as an independent contractor during the previous year. The IRS refers to this as “nonemployee compensation.”
- In most circumstances, your clients are required to issue Form 1099-NEC when they pay you $600 or more in any year.
- As a self-employed person, you're required to report your self-employment income if the amount you receive from all sources totals $400 or more.
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