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jeandillard2012
New Member

If I received a 1099-NEC, does that mean I owe taxes to FEDS

I didn't know this temporary job was not taking out taxes but they sent a 1099-NEC.  They took out something because it was not a even number on my checks.  Do I include this in my tax filing?
3 Replies
VolvoGirl
Level 15

If I received a 1099-NEC, does that mean I owe taxes to FEDS

That is self employment income.

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.  Or use any of the Desktop CD/Download programs.  You can see the Desktop programs here,

https://turbotax.intuit.com/personal-taxes/cd-download/

The Desktop programs have more features and advantages over the online version.

 

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

 

Or There is also The Turbo Tax Free File program which is free for federal and state.  And has more forms than the Federal Free Edition, like Schedules A, B, C , D, E, F, EIC, H, K-1, SE,  etc.

 

To qualify for the Free File website  you just need to meet one of these 3 things.

AGI $39,000 or less.

Active duty military with AGI of $72,000  or less

OR qualify for EIC (earned income credit.)

 

In order to use the Free File program, you have to start it at a special website.  Try signing in at the top right.

https://freefile.intuit.com/

VolvoGirl
Level 15

If I received a 1099-NEC, does that mean I owe taxes to FEDS

Then yes you will probably owe self employment tax on it.  Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

 

Maybe you have some expenses you can deduct from it.  

When you are self employed you are in business for yourself and the person or company that pays you is your customer or client.

 

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

 

Here is some IRS reading material……

 

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

 

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

 

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

SweetieJean
Level 15

If I received a 1099-NEC, does that mean I owe taxes to FEDS

You might also owe state taxes.

 

They took out something because it was not a even number on my checks.

You have to ask whoever you worked for about that.

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