DianeW777
Expert Alumni

Self employed

Yes.  The 1099-NEC is a self employment indicator which in your case can be attributed in that way because the sales reward came from a third party and not your employer. Even though that did occur during your employment, it was a reward from an outside source but still received due to your work and an intention to work.

 

Yes, the net profit is subject to self employment tax which is social security and medicare.  If you had any direct expenses attributable to the reward you can use those expenses to reduce the 1099-NEC income.  TurboTax will calculate this tax for you.

 

Follow the steps in the link below to enter your 1099-NEC. The business name will be your name and business address will be your address. If you are unsure of the business code (use the hyperlink in TurboTax) you can use 999999.

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

View solution in original post