topic Re: 1099-nec in Get your taxes done using TurboTax

1099-nec

Xrayvisionz — Thu, 11 Mar 2021 01:37:35 GMT

Have a 1099-NEC form.

Boxes 1,2,4,5,6 and 7 are blank and box 3 has the amount earned for the year.

When trying to input in to turbo, I only have the option to put amounts in to boxes 1...4..... And 7

Box 3 doesn't exist and I see no way to make it appear.

I'm presuming that the amount earned was placed in box 3 for a reason. But does it actually matter?

Should I enter the amount from box 3 into box 1 and just move on with my life?

Re: 1099-nec

rjs — Thu, 11 Mar 2021 01:50:55 GMT

It sounds like the form that you have is not a 1099-NEC. Box 3 is not used on a 1099-NEC. That's why there's no box 3 in TurboTax. Does your form actually say 1099-NEC on it? Or is it perhaps a 1099-MISC, which does have a box 3? If it's a 1099-MISC, enter it in TurboTax as a 1099-MISC, not a 1099-NEC.

What is the form for? Where is the income from? Why did you get the income?

Re: 1099-nec

Xrayvisionz — Thu, 11 Mar 2021 02:09:43 GMT

Yes ... 1099-NEC

2020 OMB No. 1545-0116

Boxes 2 and 3 are gray.

And box 3 has the amount paid.

X-ray tech working for a surgery center as a side job. Basically pay her as an independent contractor. "Green" check we used to call it. No taxes taken out.

Had both an NEC and a 1099-MISC last year, but only the NEC this year.

"You get to keep more of your money if it's reported in Box 3 of the 2020 1099-MISC form because it's not subject to FICA taxes, which are the combination of Social Security and Medicare—also referred to as “self-employment taxes” for independent contractors"

Copied the above from thebalance.com

Re: 1099-nec

VolvoGirl — Thu, 11 Mar 2021 02:12:22 GMT

Foes your 1099NEC look like this?

https://www.irs.gov/pub/irs-pdf/f1099nec_20.pdf

Re: 1099-nec

Xrayvisionz — Thu, 11 Mar 2021 02:14:55 GMT

Exactly...

Re: 1099-nec

VolvoGirl — Thu, 11 Mar 2021 02:15:43 GMT

You mean the amount is in box 1? If boxes 2&3 are greyed out? By the way, the 1099NEC is a brand new form for 2020 this year. They split out 1099Misc box 7 into 1099NEC box 1. So you didn't have a 1099NEC last year.

Re: 1099-nec

Xrayvisionz — Thu, 11 Mar 2021 02:34:08 GMT

Unfortunately no... Every box is blank except box 3.

When I say it's grayed out, it's not blocked out. On the back it says box 2 and 3 are reserved. But that's where her total amount earned is.

If that piece from balance.com is correct and it was placed there to save her on FICA, I'd like to take advantage of that.

You're right about the 1099-NEC for last year...I was hallucinating lol

Re: 1099-nec

Xrayvisionz — Thu, 11 Mar 2021 02:38:28 GMT

Since it doesn't seem like I have any options, I'll just go with putting the amount from 3 into box 1 and move on with my life lol

Perhaps it's just an error on the employers end.

Re: 1099-nec

rjs — Thu, 11 Mar 2021 03:40:59 GMT

It's definitely an error by the company. Box 3 is gray because it's not supposed to be used. I wonder how the company filed it with the IRS. The IRS is not going to accept it with box 1 blank and an amount in box 3.

Putting the amount in box 1 is the right thing to do. And it's self-employment income. You will have to pay self-employment tax if your net self-employment income is over $432.