HOW TO POPULATE A SCHEDULE "C" WITH A 1099-NEC:
Try these steps:
- Select the tab at the top for Federal Taxes, then Wages and Income
- Scroll down the page a bit until you see "1099-MISC and Other Common Income Section"
- Under this section you will see "Income From 1099-NEC" - Click Start button then select "Yes"
- Near the bottom to the right click on "Add a 1099-NEC"
- Fill out the information per the information provided to you on the 1099-NEC - be sure not to omit anything
- Check the box next to "My form has other info in boxes 4-17" - this then opens up the rest of the page below that....
- Again, fill out the information accordingly as it is on the 1099-NEC you received (be sure not to miss anything);
FYI - click on this - "What if my form has other boxes filled in?" and the below statement will appear
- "If you have info in box 7, you might have to report income from this sale in the "Business Income and Expenses" section"
- Scroll to the bottom and click "Continue" - then follow prompts to fill in the appropriate information accordingly
- Ignore the stmt. "What if I got my 1099-NEC for something other than a job" - since you stated it was for work performed by you
- Click "Continue"
- Check off the box to the left of "None of these apply to me" and click "Continue"
- Check the box to the left of "Yes, I have expenses to deduct"
You are now at the Self-Employed 1099-NEC Income Page; Here you pick a name for your "business" or enter the one you've already chosen. It does not have to match the one on the 1099-NEC you received, but it should. As long as the SS# or FID# (whichever you used for yourself, NOT the payor's info.) match what the IRS has already received by the payor, that is fine. Click "Continue"
- Now, you want to click on "Edit" to the right of the 1099-NEC listed that you just entered. It is going to begin to walk you back through
the process, but now with more questions...Select "YES I have expenses to deduct" - click "Continue"
- Check the circle to the left of your business type/name listed there, then click "Continue".
This has now generated a full Schedule C for you. YEAH!
Now, at the very bottom of your Income Summary Page, click on "Done with Income"
NOW, go back to "Wages and Income" section, scroll down until you see "Business Items", and you will see "Business Income and Expenses (Sch C)" - you will see it says "Needs Review", so click on Update, then Edit (to the right of the 1099-NEC, and that is how you populate the Schedule C.
The system now will be prompting you to add a product in order to add the Schedule C to your return. All tax preparation software systems charge extra for this form. Unless you started out with the version that includes it, then you've already made that selection.
