topic Misc 1099 in Business & farm

Misc 1099

Janet13 — Mon, 10 Feb 2020 16:50:10 GMT

I received this form for contract nursing. I don't have a business established. I am being asked to provide a Principle business code and I am not sure what this mean.

Re: Misc 1099

MayaD — Mon, 10 Feb 2020 17:16:42 GMT

When you receive a 1099 Misc you are considered as self employed and you are operating a business. TurboTax will ask for your business name and address and the Business code.

The principle business code is a six digit code that corresponds to the type of work you perform.

You can use code 623000 - Nursing & residential care facilities

Re: Misc 1099

Janet13 — Mon, 10 Feb 2020 17:35:17 GMT

My next hang up with this is the 2106 Form. I don't know how to respond to the expense type. I don't know if I should choose fee basis state/local gov or Misc 2% itemized (state).

Thank you

Re: Misc 1099

DawnC — Mon, 10 Feb 2020 17:59:48 GMT

Choose Misc 2% itemized. But you should only be entering expenses related to your W-2 work in that section (Form 2106).

I see above that you were originally asking about self-employment income from a 1099-MISC. If the expenses you are entering on the 2106 form are related to your self-employment income, those expenses should be reported on Schedule C with that income. Those expenses are fully deductible. The ones are Form 2106 are not. You get a bigger tax break by reporting them on Schedule C. Only employee (W-2 work) expenses go on Form 2106 and those are not deductible on federal returns.

Where do I enter my self-employment business expenses, like home office, vehicle mileage, and supplies? - Use this link for instructions for reporting expenses related to your 1099 income.