Retirement tax questions

Income from being an independent contractor for Young Living should be reported on Schedule C using the Form 1099-NEC that you received.   Since it is self-employment or 'non-employee compensation' it must be associated with a Schedule C, even if there are no expenses being claimed. 

The information required for the Schedule C will include the type of business, the business name (or your name if there is no specific business name), the business address (or your address), etc.

Since income reported on Form 1099-NEC needs to be reported on Schedule C, the program is trying to tie these two forms together to be sure that it is reported correctly and on the right form.

Try going back to the section where you entered the Form 1099-NEC if you entered it on its own and delete that entry.  Use these steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “1099-NEC” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to 1099-NEC”
• Click on the blue “Jump to 1099-NEC” link

This will bring you to the summary of all Form 1099-NEC that you have entered.  Click Delete or the trash can icon next to each one.

Next, you will re-enter the Form 1099-NEC as part of the Schedule C so that the income is reported directly as part of your wife's Business Income and Expenses and within the correct form and section of the return.

Use these steps to go to the Schedule C section of your return.  

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “schedule c” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to schedule c”
• Click on the blue “Jump to schedule c” link

If you do not already have a Schedule C in the return, follow the prompts and enter the information about your wife's Young Living business for which the Form 1099-NEC was received.  Then continue through that section to Add Income and enter the Form 1099-NEC plus any other income received for that self-employed business.