She doesn't have a business, it was a job she got hired for, and he ended up giving her a 1099-NEC. When would a schedule C be required?
This needs to be reported on Schedule C as it was income received as an independent contractor. Since it was reported on the 1099-NEC, the person she did the work for did not consider her an employee so he did not take taxes out of her pay which means she will need to pay Self Employment taxes. This will also solve the problem with TurboTax saying she does not have earned income.
A schedule C is required whenever you work as an independent contract or own or operate a business as a sole proprietor.
In your example, just as in the WI instructions example, the net earnings from self-employment are in parentheses, indicating a negative net, right? (income minus expenses) I am only asking because the examples all have net earnings as negative, and I wondered if that is because they can't be counted even if they are positive, or if those examples just happen to have a negative net.
No. If the income IS POSITIVE it IS COUNTED. The examples are to show that if your expenses outweigh your income, then you would not be eligible as you are showing a loss or negative and you are not showing any taxable earned income.
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