Form 1099-NEC is used to report Nonemployee Compensation, this income is considered self-employment. If your son is doing this work with the intend to make a profit then report this as self-employment income on Schedule C. This way he can claim any expenses that were related to this income. The Schedule C, will show your son's name not the name of the company that paid him will not show up on the Schedule C, but it will be reported when you enter the 1099-NEC.
If he does this work with no intention of making a profit. In this case he would not have to pay self employment income but he could not claim any expenses.
To report 1099-NEC hobby income in TurboTax:
- Enter it under Wages & Income
- Go to Less Common Income
- Under Miscellaneous Income go to Hobby income and Expenses
- Select that the income is from a "sporadic activity or hobby" to avoid self-employment tax
- This would report this on Schedule 1, Line 8, rather than Schedule C.
Business v. Hobby
@poncho_mike
