topic I am trying to add a 1099 -nec and it looks like I am creating a business. I'm not, I did contract work. how do i enter that? in Get your taxes done using TurboTax

I am trying to add a 1099 -nec and it looks like I am creating a business. I'm not, I did contract work. how do i enter that?

rjeverette — Sat, 07 Feb 2026 15:21:20 GMT

Re: I am trying to add a 1099 -nec and it looks like I am creating a business. I'm not, I did con...

DianeW777 — Sat, 07 Feb 2026 15:28:48 GMT

A 1099-NEC is the definition of self employment. Contract work is considered as 'independent contractor' as opposed to an employee. As a business you can deduct any expenses that directly relate to earning this money. As a hobby no expenses will be allowed.

You can decide if it is hobby or business income. This IRS link will help you: Business or Hobby?

Key elements:

A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.

Once you decide what type of income this is you can use the link below to see how to report.

How do I report income from self-employment?

Other Miscellaneous Income: Hobby Income

Go to the Wages and Income section of TurboTax
Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Hobby Income and Expense > Enter the income

Re: I am trying to add a 1099 -nec and it looks like I am creating a business. I'm not, I did contract work. how do i enter that?

xmasbaby0 — Sat, 07 Feb 2026 15:29:57 GMT

If you have a 1099NEC for "contract work"--- you have self-employment income, and the IRS considers you to have a business. You have to pay self-employment tax for Social Security and Medicare and ordinary income tax yourself, because none of those were withheld from your paychecks. You can prepare a Schedule C for your business expenses.

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-business-expenses-like-home/L1k6HJY4A_US_en_US?uid=m6jrthmp

If you live in a state with a state income tax, you might need to make estimated payments to your state.

https://turbotax.intuit.com/tax-tips/small-business-taxes/the-home-office-deduction/L1RZyYxzv

https://ttlc.intuit.com/turbotax-support/en-us/help-article/estimated-taxes/make-estimated-tax-payments/L5svMESaC_US_en_US?uid=mdna5aoh

https://turbotax.intuit.com/tax-tools/calculators/self-employed/

https://ttlc.intuit.com/community/business-taxes/discussion/self-employed-don-t-miss-these-tax-moves/00/3400413

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-schedule-c/L5Fz3j5us_US_en_US?uid=m6a6gknk

https://ttlc.intuit.com/turbotax-support/en-us/help-article/payroll-additions-deductions/qualify-qualified-business-income-deduction/L0rM2cIIQ_US_en_US?uid=m5zpoxad

https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/self-employed-expenses-deduct/L37ZS1B8T_US_en_US?uid=m6fntpg7