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

1099NEC

Mbar13 — Thu, 03 Feb 2022 21:45:04 GMT

A friend hired a contractor to renovate her home, he was short on help so paid me to do 2 rooms. I received a 1099 NEC for the amount he paid me but that amount was for labor and materials. I do not have a business, this was a one off situation. Where do I subtract out the cost of materials, which accounted for over 1/2 off what I received? thanks!

Re: 1099NEC

DavidD66 — Thu, 03 Feb 2022 22:10:33 GMT

First of all, in order to deduct the cost of materials, you will need to use TurboTax Self-Employed if using the online version. It looks like you are using TurboTax Online Premiere. You will report your 1099-NEC income on Schedule C, as if you had a business and were self-employed. The program will guide you through entering your income (Form 1099-NEC) and your expenses. Don't forget to claim any other expenses you might have, such as mileage or out of pocket costs for which you were not reimbursed.

Re: 1099NEC

eaglei22 — Thu, 03 Feb 2022 22:19:46 GMT

I'm in a similar situation. I learned you're supposed to get a 1099-NEC if you made over $600. You enter the 1099-NEC and then you'll have to create a schedule C regardless if you have a formal business or not. This is where you claim your, "business" deductions.

Note: I am using Turbotax Deluxe..

Re: 1099NEC

MayaD — Fri, 04 Feb 2022 14:51:20 GMT

The IRS has reintroduced Form 1099-NEC as the new way to report self-employment income instead of Form 1099-MISC as traditionally had been used.

To claim your Business expenses, you need to upgrade to Turbo Tax Self-Employed (Online) or TurboTax Home & Business (desktop).

To report the income on your return:

Log in to your account.
Select Federal from the left menu.
Go to Wages and Income then select Income and Expenses.
Go to Self-employment income and expenses and click start. you'll be asked some general questions about your business. After you answer them, you’ll be taken to enter your Income and Expenses.