Form 1099 NEC

bettnott — Sat, 12 Apr 2025 22:52:47 GMT

I am another Amazon Vine participant. I understood from the beginning that I would be taxed on items received - mostly at msrp. I have entered my information from the 1099 NEC & have completed all my entries for the return. At the final review, errors are shown - all regarding the Schedule C generated from the 1099NEC entry. It is asking for a 6 digit Principal Business activity code - I don't have a business & have no code. It is asking me to return to the form & complete the topic as to whether it is a qualified or non-qualified business. Is this question meant for the business I don't have or asking if Amazon is qualified or not? It is also asking for a business address - for me or Amazon. There is an option to check a box stating that the business name & taxpayer name are the same. I assume I should check this even though there is no business name. Schedule C non cash accounting method must be entered - don't know what to enter form cash, accrual or other (assuming other). Material boxes must be entered - line G - yes or no? I know that the 1099 was required. Is it ok to enter the income information & ignore the schedule C so that the amount of tax will be entered into the final total?

I am having to mail in this return due to a form 5329 being required for a financial institution that failed to make a requested RMD. I did not catch the mistake until April 11 - 10 days after my deadline of April 1 due to being my first RMD. I have a feeling that the return may already catch some extra scrutiny. I do not see a way to file online with that form & Turbo Tax. I appreciate any help that can be provided.

Re: Form 1099 NEC

MonikaK1 — Mon, 14 Apr 2025 17:01:39 GMT

Because you have an ongoing activity for profit where you receive a Form 1099-NEC, and you are not an employee, you are treated as having a business. Answer all of the questions in that section in order for your taxes to be accurately calculated.

Some of the questions are for calculating your Qualified Business Income Deduction.
Enter your own address unless you have a separate address from which you conduct the activity.
Most small businesses use the Cash method of accounting. See this help article for an explanation of the accrual method.
See this IRS topic about material participation.
See here for the IRS list of business activity codes.

You can typically e-file with a Form 5329. Review the reason TurboTax has identified for needing to mail your return.

topic Re: Form 1099 NEC in Get your taxes done using TurboTax

Form 1099 NEC

Re: Form 1099 NEC