Business & farm

For tax purposes, self-employment income includes any part-time businesses or "side work" performed in which you are in business for yourself, rather than another person. You are also considered self-employed if you engage in business-like activities where you intend to make a profit. 

After you input your 1099-NEC, you must answer all of the questions after the input screen so it flows to either a Schedule C (self-employment income) or Other Income. Please keep in mind that if you have your 1099-NEC flow to Other Income, you will not be able to deduct any expenses in connection with earning this income. 

To assign your 1099-NEC to either a Schedule C or Other Income, please follow the steps below: 

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Click Edit next to your 1099-NEC.
5. On the page titled Guess what? You can deduct expenses for the example work choose Yes, I have expenses to deduct to assign this income to a Schedule C or No, I don't have expenses related to this income if it should flow to Other Income.
6. If you answer Yes to #5, on the page titled Self-employed 1099-NEC Income, you can add a new self-employment business on this screen.

If you go the Schedule C route, please confirm your 1099-NEC was linked to your Schedule C and enter any relevant expenses connected with this income.

Please follow the instructions below:

1. Search for Sch C with the magnifying glass tool at the top of the page.
2. Click on the Jump to Sch C link at the top of the search results. 
3. On the page titled Your 2020 self-employed work summary, you should see your 1099-NEC listed with the corresponding amount. 
4. Click review next to the income from your 1099-NEC. 
5. Follow the on-screen instructions on the following pages. 

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