topic Proper entry for 1099-NEC non reimbursable expenses in Get your taxes done using TurboTax

Proper entry for 1099-NEC non reimbursable expenses

jbroo4 — Sat, 27 Mar 2021 21:37:25 GMT

I have an LLC as a sole proprietorship for my business. I received a 1099-NEC from a state for work performed and that work was only a smallish portion of the business's income.

I entered all my business income and business expenses in the Business section of TurboTax Home and Business. Currently working on the Personal income section. Upon entering the 1099-NEC info, TurboTax recognized the entry on schedule C for the state work, but what is the proper to enter non reimbursable expenses ? Should I choose "have" or "don't have" expenses?

Do I need to separate out the expenses for the work of that 1099-NEC for the state and enter it separately, or was it correct to answer all my business expenses in the business section without breaking them out for the state work?

Re: Proper entry for 1099-NEC non reimbursable expenses

ColeenD3 — Sat, 27 Mar 2021 22:45:36 GMT

Yes. You need to show the show that portion on Schedule C as an expense, and include it under miscellaneous expenses with an explanation.

Re: Proper entry for 1099-NEC non reimbursable expenses

jbroo4 — Sun, 28 Mar 2021 21:15:52 GMT

Thanx ColeenD3 - but not sure what I need to do in TTax.

I already entered all business expenses including those specifically for the state work into TTax when I entered expenses the business expense section.

-- Do need to break the expenses associated with the 1099-NEC work out separate from the rest of the business expenses from other clients?

-- Specifically where/ how in TTax would I enter the explanation? Would I enter directly on the Form or enter via the walkthru entry?

Re: Proper entry for 1099-NEC non reimbursable expenses

MaryM428 — Sun, 28 Mar 2021 21:50:31 GMT

You do not need to enter expenses associated with the work that you did for the sate separately from you other business expenses. TurboTax will create a Schedule C for the work you did for the state. In this case the Schedule C will only contain the income and not the expenses for that work. It is fine to include the expenses along with your other client work.

@jbroo4