Retirement tax questions

The presentation of IRS form 1099-NEC is that way because the IRS presumes that IRS form 1099-NEC income is self-employment income that is subject to self-employment tax computed on Schedule SE as well as income tax computed on IRS Form 1040.

In an effort to eliminate this confusion, I recommend that you:

• First, create the self-employment activities within TurboTax, then, 
• Second, enter IRS form 1099-NEC income into the appropriate self-employment activity.

So, if you have self-employment activities A and B and IRS forms 1099-NEC W, X, Y and Z:

• Create self-employment activity A, then
• Create self-employment activity B, then

Enter the appropriate IRS form 1099-NEC into the correct self-employment activity.  For instance,

• Enter IRS form 1099-NEC W and X into self-employment activity A, and
• Enter IRS form 1099-NEC Y and Z into self-employment activity B.

In TurboTax Online, create the self-employment activity by following these steps:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Scroll down to Self-employment  click on the dropdown menu.
• Click Start/Revisit to the right of Self-employment income and expenses.

In TurboTax Online, within the create the self-employment activity:

• Click Edit to the right of the appropriate self-employment activity.
• Under Income, select Add income for this work.
• Select Form 1099-NEC.  Click Continue.
• Enter the appropriate income.