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Income reported in box 1 of form 1099-NEC is self-employed income. You are considered as self-employed and in IRS terms, are operating a business doing what you do to earn the income reported on the form 1099-NEC. You enter your form 1099-NEC in TurboTax and TurboTax will populate a Schedule C after you enter all your information. You can deduct any expenses you paid related to this activity (such as supplies, car expenses, etc.)
Self-employed income is subject to income tax AND self-employment tax (calculated at 15.3% on 92.35% of net self-employed income).
You do not own a business in the common meaning of the word. So in TurboTax answer that you use the cash method, that you do not have an EIN. You use your own name as the business name and your personal address as the business address.
You’ll need to use TurboTax Deluxe (or TurboTax Self-Employed if you have expenses to deduct), or TurboTax Home and Business.
You can read this TurboTax article for more information.
To enter a Form 1099-NEC that is not for self-employment -
Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Scroll down to Other Common Income
On Form 1099-NEC, click the start or update button
On the screen Did you get a 1099-NEC? click on Yes
On the screen Do You Want to Enter Your 1099-NECs Now? click on Add a 1099-NEC
Enter the 1099-NEC and Continue
On the screen Describe the reason for this 1099-NEC enter anything and Continue
On the screen Does one of these uncommon situations apply? click on 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 Continue
Click on Done
The amount entered from the Form 1099-NEC will be entered on Schedule 1 Line 8z
The total from Schedule 1 Part I Line 10 flows to Form 1040 Line 8
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