@tgad1000 wrote:
Thank you for your reply!
once I declare the income of the 1099! does turbo tax trigger the payment of the social security tax? Or I have to find schedule C and starting this myself manually. Please explain.
I appreciate your patience with me.
In your wife's case, as part of her business tax return, she will indicate that she paid a subcontractor. I believe that will trigger Turbotax to produce the 1099-NEC, although I have not used this particular function. The 1099-NEC needs to be e-filed with the IRS, with a paper or electronic copy going to the subcontractor who was paid (you).
In your case, if you are already using turbotax self-employed (online) or home & business (desktop), the easiest thing to do will be to add a business for yourself, then enter the 1099-NEC. (If you enter the 1099 first, the program should prompt you to create a business, but it would be simpler to manually create the business.).
You should end up with one tax return that contains multiple documents -- all your other deductions, credits, dependents and any other income, and also a schedule C (for you) that reports your income and expenses, and a schedule SE (for you) that calculates and pays the self-employment tax. If your wife's business is also on a schedule C, then your one overall tax return will contain two schedule Cs and two schedule SEs.
