If you receive tax form 1099-NEC for services you provide to a client as an independent contractor and the annual payments you receive total $400 or more, you'll need to file your taxes a little differently than a taxpayer who only receives regular employment income reported on a W-2.
If you received a 1099-NEC, it should be entered under Business Income and Expenses Schedule C.
You will need to enter your business information which will create your business profile.
Once you have done that, you will find the entry under Business Income which will be within the Business Income and Expenses section.
The IRS has reintroduced Form 1099-NEC as the new way to report self-employment income instead of Form 1099-MISC as traditionally had been used. This was done to help clarify the separate filing deadlines on Form 1099-MISC and the new 1099-NEC form will be used starting with the 2020 tax year.
If you are self-employed,
- You can expect to receive this new form from a business that paid you $600 or more for nonemployee compensation in tax year 2020 or later.
- You should receive these forms by January 31 each year (February 1 in 2021 on account of January 31 falling on a Sunday). and use them to prepare your tax return.
