I see in many forums TT employees saying that if you receive a 1099-NEC you are a self-employed business, including someone who got paid for playing in a church band. This all seems misguided. IRS says differently HERE:
Answer:
If payment for services you provided is listed on Form 1099-NEC, Nonemployee Compensation, the payer is treating you as a self-employed worker, also referred to as an independent contractor.
- You don't necessarily have to have a business for payments for your services to be reported on Form 1099-NEC. You may simply perform services as a nonemployee.
- The payer has determined that an employer-employee relationship doesn't exist in your case.
If you weren't an employee of the payer, where you report the income depends on whether your activity is a trade or business. You're in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous.
However, TT does not make it easy (or possible???) do follow these IRS recommendations because the interface doesn't provide the option to just edit these fields directly and to ignore the "so, you're a business" assumption made after inputting a 1099-NEC.
I hope TT can amend this.
