If the business treated you like an employee (e.g., they told you exactly when to show up, provided all tools, and supervised you closely) but paid you as a contractor to save money, they may have mi...
See more...
If the business treated you like an employee (e.g., they told you exactly when to show up, provided all tools, and supervised you closely) but paid you as a contractor to save money, they may have misclassified you, especially if you had been employed by them. However, for a single paycheck, it is usually easiest to just report it on Schedule C and move on.
To enter your 1099-NEC in TurboTax, do the following:
Select Wages & Income from the panel on the left
Click on the Add more income box and the “Add more income” screen will appear
Scroll down to the Self-Employment (Schedule C: 1099-NEC,1099-K, expenses) category and click the down arrow to expand
Select Add, then Start to the right of Self-Employment income and expenses
The next screen will ask, Did you have any self-employment income or expenses?
Select Yes
Enter a description for receiving Form 1099-NEC (e.g. Consulting), press Continue
In the We need a little more info section, choose the best description, “None of these apply”, then press Continue
Next, you can select any (or all) of the boxes, indicating whether “It’s a main source of income”, or “It’s something else”, then press Continue
Input when you started the work that led to your having received Form 1099-NEC, then press Continue
Answer the next series of questions, pressing Continue to advance to the next question
Once you are finished, you will reach the summary page where you can review each section and make changes by clicking Edit found under each section
Scroll down and click on the Looks good box at the bottom right of the screen
You will now see, Let’s enter the income…, select Form 1099-NEC and Continue
Enter the information from your 1099-NEC here, then press Continue
You will be asked if you have more self-employed income for this specific entity, select No
Next, select Yes when asked, Did you have any expenses…? (For example, mileage to and from the workplace)
Select, Type in my expenses
The system will generate a list of recommended expense categories
Press the Get started button, then scroll down to the search box and input, “misc”, which will cause the Other miscellaneous expenses box to appear
Check the box and press Continue
On the following screen, click the pencil to the right of the Other miscellaneous expenses
Enter a description, (e.g. conference fees) and the amount, then press Continue
Note that you may deduct certain expenses (e.g., conference fees) to reduce your taxable income.
For more information, click on this link: What's a 1099-NEC?