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mikrin
Returning Member

1099 NEC

I received a 1099 NEC for $800. I am willing to pay the taxes on the full amount without any deductions but TT won't let me proceed. This is a hobby, and going through all my records to justify mileage, etc. and TT bumping me up to TT Business, it's just not worth the trouble.  Any way to move on without all the errors so I can file? Thanks.

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6 Replies

1099 NEC

To enter a Form 1099-NEC that is not for self-employment -

Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Scroll down to 1099-MISC and Other Common Income
On Income from Form 1099-NEC, click the start or update button


On the screen Did you get a 1099-NEC?, click on Yes
On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC
On the screen Let's get the info from your 1099-NEC, enter your information and Continue
On the screen Describe the reason for this 1099-NEC, enter a reason and Continue
On the screen Does one of these uncommon situations apply? -

Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby and Continue


The amount entered from the Form 1099-NEC will be entered on Schedule 1 Line 8z
The total from Schedule 1 Part I Line 10 flows to Form 1040 Line 8

DaveF1006
Expert Alumni

1099 NEC

Yes, just file this as hobby income. 

 

  1. Open your Federal return and choose Wages and Income
  2. Scroll down to Less Common Income and Show more
  3. Choose Miscellaneous Income>Hobby income and Expenses
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mikrin
Returning Member

1099 NEC

I did enter it as a hobby. 

dmertz
Level 15

1099 NEC

You can't apply expenses against hobby income.  Doing so causes the income to be business income, not hobby income.  Prior to 2018 you could deduct hobby expenses on Schedule A as miscellaneous deductions subject to the 2%-of-AGI floor, but the Tax Cuts and Jobs Act of 2017 suspended those deductions through 2025.

 

https://www.irs.gov/newsroom/tips-for-taxpayers-who-make-money-from-a-hobby

mikrin
Returning Member

1099 NEC

Even though chose hobby income, TT is forcing me to deduct expenses before I can proceed.

 

DianeW777
Expert Alumni

1099 NEC

You can enter the expenses for your hobby if you have any or you can make sure the field is blank (use the delete key while in the field).  The expenses will not be used on the tax return when the income is from a hobby.

 

@mikrin 

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