I need help with 1099 NEC

[CatinaT1]

You don't specify what help you are needing, so I am going to guess that maybe it has to do with associating your 1099NEC to a Schedule C.

Currently there is a known issue when using TurboTax Online that is related to the program asking you to double-click to link to Schedule C. 

Please review the article below and use the link in the article to enter your email address to be notified once this is resolved:  

TurboTax: Why Am I Unable to Link my 1099-NEC?

Also you can review the information below for possible steps to solve the issue.  

Income reported on Form 1099-NEC must be reported on Schedule C, the program is trying to link these two forms together to be sure that it is reported correctly and on the right form.

Revisit the section where you entered the Form 1099-NEC if you entered it on its own and delete that entry, by following these steps:

1. Open TurboTax.
2. On the top right corner of TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner).
3. Type in “1099-NEC” (or for CD/downloaded TurboTax, click Find),
4. Click on “Jump to 1099-NEC”
5. Click on the blue “Jump to 1099-NEC” link

This will bring you a summary of all Form 1099-NEC that you have entered.  Click Delete or the trash can icon next to each one.

Next, you will re-enter the Form 1099-NEC as part of the Schedule C so that the income is reported directly as part of your Business Income and Expenses and within the correct form and section of your return.

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

1. On the top right corner of TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner).
2. Type in “schedule c” (or for CD/downloaded TurboTax, click Find).
3. Click on “Jump to schedule c”.
4. Click on the blue “Jump to schedule c” link

If you already have created a Schedule C in your return, click on edit and go to the section to Add Income.  This is where you will re-enter the Form 1099-NEC. 

If you do not already have a Schedule C in your return, follow the prompts and enter the information about your work/business for which you received the Form 1099-NEC.  Then continue through that section to Add Income and enter the Form 1099-NEC along with any additional income you received for that business.  

Once you have completed this, the error should be eliminated. 

[stuter57]

It won't allow me to enter the social security number.  

[Critter-3]

The issuer of the 1099-NEC should not have used their SS# ... they should have gotten an EIN.  But since they didn't all you can do is skip the 1099 input section and simply enter the income in the next section in the Sch C income area ...

[sandy613]

When I am reviewing my taxes, they are asking me questions regarding the 1099nec that I don’t know how to answer.  I received a 1099nec because I participated in a research study.  It is not an independent business that I am running.

[sandy613]

PS. They are saying that I need to link it to Schedule C or Schedule F but not both.  I don’t know how to proceed.

[AliciaP1]

You need to revisit the general information for your 1099-NEC and answer that it is a "sporadic activity or hobby income".  

To enter your 1099-NEC as a sporadic activity in TurboTax Online please follow these steps:

1. Go to the Income & Expenses section of your tax return
2. Click Edit/Add for your form 1099-NEC
3. Input the details of your 1099-NEC and click Continue
4. Answer the questions and Continue until you get to the Does one of these uncommon situations apply? page
5. Choose This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common) and click Continue

@sandy613

[sandy613]

Thanks!  Turbotax had an ask the expert forum today and they said to remove the 1099nec.  She said that instead I should-

In TurboTax CD/Download:

1. Go to Wages an Income.
2. Select I'll choose what I work on.
3. Scroll down to Less Common Income
4. Click Start Next to Miscellaneous Income.
5. Scroll Down to Other Reportable Income. 

Now, I am confused as whose advise I should follow.  Thoughts?

[AnnetteB6]

The simplest answer is the one provided by Tax Expert AliciaP1.  Go back to the 1099-NEC entry and edit the reason that you received the form.  If it is marked as 'sporadic activity or hobby income', then it will be reported on Schedule 1 line 8z, and you are done.  

There will be no other questions or requests to link Form 1099-NEC to a Schedule C or F.

@sandy613

[sandy613]

OK, Thanks.  I will re-do it.  It is a bit frustrating that 2 tax experts insisted on their solution and 2 other tax exports backed up a different solution.

[edrooks1]

Do I have to file a schedule c if may 1099-NEC is for "Sporadic Activity"?

[DianeW777 · Accepted solution]

It's a decision you must make.  The income document itself does lead towards self employment income.  Here are some pieces of information to help you decide.

You can decide if it is hobby or business income.  This IRS link will help you: Business or Hobby?

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.

Once you decide what type of income this is you can use the links below to see how to report.

• How do I report hobby income?
• Where do I report self employment income?

@edrooks1