How do I report a 1099 NEC as additional income?

[rjw1952]

I need to report a 1099 NEC as additional income?

[rjs]

What did you get the 1099-NEC for? Who sent it to you? What did you do to earn the income shown on the 1099-NEC?

Have you already filed your 2022 tax return, or are you still working on it?

[rjw1952]

I worked for a performing arts playhouse and made a total of $388,  I have a letter from them stating I should not have received one. 

[AliciaP1]

Since you were employed as a contractor, the IRS views you as self-employed.  The filing requirement for self-employment income only is if you had net earnings (income minus expenses incurred) of $400 or more.  If you had other earned income, and your expenses exceeded the $388 of income, you will report the income and expenses and the loss could lower your other taxable income.

See How do I report income from self-employment? to enter your self-employment income and What self-employed expenses can I deduct? for eligible expenses you can deduct.

[Edited 4/1/23 | 9:04 AM PDT]

@rjw1952 

[rjs · Accepted solution]

It doesn't matter whether you did or did not receive a 1099-NEC, or whether you should or should not have received one. The fact is that you received the income, so you have to report it on your tax return.

If this is a type of work that you do regularly, or just from time to time, you are self-employed and you should report the income as business income. But if this was a one-time engagement, and not a type of work that you normally do, you can report it as other income.

If you have no other self-employment income or business income, since the amount is less than $433 you will not have to pay any self-employment tax. So your tax will be the same no matter how you report it.

To enter the 1099-NEC as other income in TurboTax, type 1099-nec in the Search box, then click the link that says "Jump to 1099-nec." After you enter the information from the 1099-NEC, you will come to a screen that asks "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." The income will be reported as other income on Schedule 1 line 8z.

If $388 of self-employment income or other income is your only income for the year, you are not required to file a tax return. But if you are filing a tax return for any reason, you have to report all of your income, no matter how little it is.