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thenk83
New Member

What if I started a business in late 2020 but didn't get any income in 2020, how do I report a 1099-NEC that TurboTax is requesting?

What I also mean is, from the business I didn't make money in 2020.
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1 Reply
ErnieS0
Expert Alumni

What if I started a business in late 2020 but didn't get any income in 2020, how do I report a 1099-NEC that TurboTax is requesting?

TurboTax may be requesting a 1099-NEC if you told TurboTax that you had to send out 1099s to someone for work they did for your business.

 

Did you pay anyone $600 or more in relation to your business in 2020? If so you can use TurboTax Quick Employer Forms to issue 1099s.

If not

  • Type self employed income in Search in the upper right
  • Select Jump to self employed income
  • Edit your self-employed work summary
  • Edit General info
  • Edit Required to send a 1099. Change to No if it says Yes

Enter nonemployee compensation (NEC) of $600 or more. Include fees, commissions, prizes and awards for services performed as a nonemployee, other forms of compensation for services performed for your trade or business by an individual who is not your employee, and fish purchases for cash. Include oil and gas payments for a working interest, whether or not services are performed. Also include expenses incurred for the use of an entertainment facility that you treat as compensation to a nonemployee. Federal executive agencies that make payments to vendors for services, including payments to corporations, must report the payments in this box. 

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