Suzanne's income is for non employee. turbo tax is guiding me with misc. forms. how can I change this?

Forum|Forum|5 years ago
March 10, 2021
4 replies
26 views

No text available

TurboTax Self Employed Online

ColeenD3

Level 15

To enter your 1099-NEC onto Schedule C, follow the steps below.

We'll automatically complete Schedule C when you set up your self-employment work in TurboTax or when you enter what the IRS considers self-employment income, which is usually reported on Form 1099-NEC or 1099-MISC.

Schedule C is supported in TurboTax Self-Employed (both online and in the mobile app) and in all personal 1040 versions of the TurboTax CD/Download software.

To set up your business:

Open or continue your return.
Search for schedule c and click the Jump to link in the search results.
Answer Yes to Did you have any self-employment income or expenses?
- If you've already entered self-employment work and need to enter more, select Add another line of work.
Follow the onscreen instructions.

Nwesu

Level 2

When I follow your instructions and click on Update on the Business Income line, the next Business Income page has lines for 1099-NEC and 1099-MISC. But when selecting first one, it asks "did you receive income from this farm reported to you on" the NEC form? But the when selecting the second one, it seems it's the only place that I can include the NEC income from the two different companies for the work I performed in 2020. In 2019, I received this income on the 1099-MISC form. Should I proceed as if I received the MISC instead of the NEC?

linaj20201

Level 14

No, you should not. Let's try a different way.

In order to link your Form 1099-NEC correctly to the Schedule C, you will need to enter the information in both Form 1099-NEC and Schedule C sections. You would start from the 1099-NEC section under "1099-MISC and Other Common Income". You would then follow prompts to tell the program you are filing a Schedule C. As it creates a Schedule C for you, you will need to go to the Schedule C portion separately to confirm your income amount, add related expenses and complete required information.

In TurboTax online, here are the steps:

Sign into your account, select Pick up where you left off
From the upper right menu, select Search and type in 1099nec and Enter
Select the Jump to 1099nec
Follow prompts to complete the section

Then

From the upper right menu, select Search and type in schedule c and Enter
Select the Jump to schedule c
Next screen, "Your 2020 work summary" under your self employed business, select Review
Continue to enter related expenses and other required information

Your self-employment net profit will show on your Schedule 1 line 3 and line 8 of your Form 1040.

Beginning with the 2020 tax year, the IRS will require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses will need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor. This was done to help clarify the separate filing deadlines on Form 1099-MISC and the new 1099-NEC form will be used starting with the 2020 tax year.