The IRS presumes that 1099-NEC income is self-employment income that is subject to:
- Self-employment income computed on Schedule SE. as well as
- Income tax computed on IRS Form 1040.
You are answering questions to generate a Schedule C.
Is this a qualified trade or business under Section 199A? Don't know the answer.
The income reported on 1099-NEC likely qualify as a trade or business.
If this business was operated by taxpayer / spouse / jointly. It's making me check one.
If the 1099-NEC has your name and Social Security number, the business is operated by you.
Line B: Enter principal business code. Don't know the answer. QuickZoom doesn't work.
Principal business code may be found here on page C18.
Line C: Business Name (and address). I entered the info from the 1099-NEC.
Enter your name and address not the name and address of the payer.
Line D: Employer Identification Number. Is that the same as the TIN from the 1099-NEC?
You probably do not have an employer identification number if you do not have an ongoing business. Do not enter the TIN of the payer.
Line F: Accounting method. Don't know the answer. I was paid with a check.
Select cash basis.
Line G: Did you materially participate in the operation of this business during 2021? Don't know the answer.
You did materially participate.
Line I: Did you make any payments in 2021 that would require you to file Form(s) 1099? Don't know the answer.
You likely did not prepare W-2's, 1099-MISC's or 1099-NEC's reporting payments to other taxpayers.
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