KrisD15
Expert Alumni

Retirement tax questions

The 1099-NEC will be entered and treated as Self-Employment income. 

Form 1099-NEC stands for Non-Employee Compensation and can only be treated as Self-Employment income. 

Self-Employment income is subject to "Self-Employment Tax" (FICA).

 

In TurboTax, you'll have to set up a business for the 1099-NEC. 

Enter the 1099-NEC as income for this business.

There won't be any expenses since there are no expenses relating to getting this 1099-NEC.

 

As an employee, health plans provided by an employer are not considered wages. 

This changes when you are no longer an employee.

 

 

There is a deduction available to a self-employed taxpayer that pays for health insurance for their employees, which you would not ne eligible for. 

There is also a deduction available for a self-employed taxpayer that provides their own health insurance coverage, however if your former employer subsidizes the plan you participate in, or your spouse is eligible to participate in an employer-subsidized plan, that deduction would not be allowed. 

 

You could claim your portion of the premiums on Schedule A as medical expenses, although that would be treated like any other medical expense and only apply if you decide to itemized deductions. 

 

Regardless, you will be charged Self-Employment tax on the income reported on Form 1099-NEC. 

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"