Can I complete the 1099 nec form on turbotax home and business

[agloer]

I am an a church that pays its preache as an independent contractor. I need to file a 1099nec on him

[ColeenD3]

Please see this information from JohnW222:

Form 1099-NEC, Nonemployee Compensation, is currently only available as a draft IRS form. 

It can't be filed yet.

Starting with payments made in 2020, non-employee compensation paid to independent contractors will need to be reported on Form 1099-NEC instead of in box 7 of

Form 1099-MISC.

Once the forms become available, follow the steps below.

Instructions for TurboTax Home & Business CD/Download software

Follow these directions if you're OK with paper-filing your W-2 or 1099-MISC forms. If you want to e-file these forms, use Quick Employer Forms instead.

Note: TurboTax Home & Business for Mac doesn't support the filing of W-2 and 1099 forms.

1. Launch TurboTax Home & Business.
   • If you're already working on a tax return, you'll need to close it. Select New Tax Return from the File menu in the upper-left corner, then answer Yes to save the return you currently have open.
2. Select Start a New Return.
3. Select Prepare W-2s and 1099s for my employees or contractors.
4. Select Choose Desktop and follow the instructions.

Please see this response from JohnW222:

Form 1099-NEC, Nonemployee Compensation, is currently only available as a draft IRS form. 

It can't be filed yet.

Starting with payments made in 2020, non-employee compensation paid to independent contractors will need to be reported on Form 1099-NEC instead of in box 7 of

Form 1099-MISC.

[rfjma]

How do I file the 1099-NEC's online if I am using the CD version of Turbo Tax Home and Business?  I can't access Quick Employer Forms because it sends me to buy Turbo Tax online.  I can't get to creating 1099's on Quick Business Forms without making a purchase. I can create the forms on the Desktop version, but under the "File" tab there is no option to file!

[LenaH]

In order to access Quick Employer Forms, please go to the Quick Employer Forms Sign-In and enter your login credentials. ​​​​​​After you log-in, you should be able to fill in and e-file the forms you need. 

@rfjma

[rfjma]

Thanks, but that does not work if you purchased a CD!  I signed in and it was directing me to purchase a TurboTax Product because they have no record of my CD purchase.  I finally did figure it out.  Within the desktop program, you choose to start a new return, then it gives you the option of starting a return or printing Employer Forms.  Once I chose that, then I could choose to do it online or within the program.  I found out the hard way that you cannot efile the forms unless you do them online.  I did them within the program, then redid them online after discovering in the last step that there was no option to file online.  It gave me directions on how to mail in the forms. It took me a long time and a lot of research to figure this out!  I hope by posting this I can help someone else with the same problem! I really hope TurboTax adds the option to efile the 1099's from within the program!

[Irene2805]

Thank you for your feedback!

@rfjma

[alsago]

I bought a CD for Turbotax Home and Business 2020 for MAC, but this year it does not allow me to prepare 1099 forms for my contract labor.

And when I go to Quick Employer Forms, it looks like I must purchase the program again?

Is there some way to enter the license code for my CD?

What to do?

Thanks

[rfjma]

I have the Windows version.  I'm not sure if the MAC version is the same, but with the CD version, you "Start a New Return." Then you are asked if you want to start the return or fill out 1099's.  Choose the option to fill out the forms.  If you want to file online with the IRS, you have to then choose to do it online, and not on the desktop version.  It then connects you with the forms online. I learned the hard way and filled them all out on the desktop version and could not file them, so had to redo them online. It took me a long time to figure that out!  Hopefully TurboTax makes it a little easier to find in future years! Hope that helps!

@alsago

[alsago]

Very helpful, Thanks!

[charlesolah1005]

If you only enter compensation from a 1099 NEC, TT cannot efile it. It says there is no documented earned income.

[AnnetteB6]

Form 1099-NEC reports Non-Employee Compensation, or self-employment income. 

Schedule C is used to report income and expenses from self-employment.  You are considered self-employed if you have received a Form 1099-NEC from a company for which you provide services, but you are not their employee.  Entering your income on Schedule C will document it as 'earned income'.

If this is the case, then get started with Schedule C by describing the type of business you have based on the type of services you provide.  TurboTax will guide you through the process by asking you questions one step at a time.  

Use these steps to go to the Schedule C section of your return:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “schedule c” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to schedule c”
• Click on the blue “Jump to schedule c” link

Once your Schedule C is set up, use the Add Income option to enter the details from your Form 1099-NEC.

Take a look at the following TurboTax article for more information:  Does a 1099-NEC or 1099-MISC mean I'm self-employed?

@charlesolah1005

[charlesolah1005]

No problem, however TT will not efile my returns because it says undocumented earned income when only the 1099 NEC is entered/.

[gloriah5200]

In order to e-file a return to IRS, you must have income showing on the Form 1040.

If you file 1099-NEC, did you enter an amount in the non-employee compensation box and then show the income on the Sch C or did it carry the income to the "other income" section of the return?

You will need to carry it to the Sch C not to "other income" so it will be reported as earned income.

Did you deduct more expenses against the Sch C income reported on the 1099-NEC than the income you received?  If so, then that could be the problem.

Per IRS Publication 517, most clergy members or ministers are actually W-2 employees of their church.  Please refer to the following link if that could be applicable:

IRS Publication 517

[charlesolah1005]

I show income on line 8 of the 1040. That also shows up on the Schedule C. That is my only income except for dividends.  However, since my business expenses are more than my income, the amount on line 8 is a negative number.  TT says "It looks like you have a tax situation in your federal return that makes it ineligible for e-filing, according  to IRS rules. 

Here are the details:

Your Earned Income Tax Credit (EITC) is based on non-documented earned income."

I thought I read somewhere that the NEC is a new form and the IRS is not set up to handle it?  I talked to an agent yesterday (don't remember who) and when they went to check with another agent we got cut off.