After reading all the confusion about entering 1099-NEC forms received by my dependents, I'm still confused 🤔. My son is a dependent on my return and I am creating a return for him that says he can be claimed as a dependent on someone else's return. He is not self-employed nor does he own his own business.
I enter his 1099-NEC on his return and that is fine. It then says the 'Business Income and Expenses (Sch C)' section needs review. The first question in that section asks if you have any business income and expenses.
HOWEVER, and I quote, 'But before you say "yes", if you have 1099-MISCs or 1099-NECs, it's better to enter them under 1099-MISC and Other Common Income.'
Having already done that, is it still necessary to say 'Yes' to business income? It then asks for information that does not pertain to him (such as Business Code, Accounting Method and it asks for any 1099-NEC income again).
Thanks for the clarification, Val.
