topic 1099 Misc in Business & farm

1099 Misc

katbrain — Sat, 13 Mar 2021 19:12:20 GMT

My husband received a 1099 MISC for coaching at a gym. He does not have a business formed for this income. TurboTax wants me to fill out a Schedule C with business information. How do I enter the 1099 as income without completing the Schedule C?

Re: 1099 Misc

ColeenD3 — Sat, 13 Mar 2021 19:25:47 GMT

You don't. If he is not paid with a Form W-2 for his labor, he is by default an Independent Contractor. He should have been paid with a Form 1099-NEC, for non-employee compensation.

Re: 1099 Misc

katbrain — Sat, 13 Mar 2021 19:44:28 GMT

Should I ask the company to reissue the 1099? Otherwise, how do I answer the Schedule C questions?

Re: 1099 Misc

Rick19744 — Sat, 13 Mar 2021 20:17:45 GMT

The technically correct response is that:

Your husband should inform them that they issued an incorrect form
He should request a new 1099-MISC with zero reported and the corrected box should be marked at the top of the form
Then they should issue a 1099-NEC with the earnings reflected

Re: 1099 Misc

ToddL99 — Sat, 13 Mar 2021 20:36:16 GMT

While @Rick19744 is technically correct, it is unlikely the gym management will correct the 1099-MISC and send a proper 1099-NEC.

Enter the 1099-MISC in the Schedule C (Self-employment income) interview - it is not necessary to have a 1099-NEC to report self-employment income.

Enter "schedule c" in the Search Box and select "Jump to schedule c" from the results. This will start the Schedule C interview.

The following screenshots show what to look for in making this entry. When you select the "Add Income for this Work" option, the next screen allows you to identify and report the 1099-MISC income.

Re: 1099 Misc

ToddL99 — Sat, 13 Mar 2021 20:37:26 GMT

While @Rick19744 is technically correct, it is unlikely the gym management will correct the 1099-MISC and send a proper 1099-NEC.

Enter the 1099-MISC in the Schedule C (Self-employment income) interview - it is not necessary to have a 1099-NEC to report self-employment income.

Enter "schedule c" in the Search Box and select "Jump to schedule c" from the results. This will start the Schedule C interview.

The following screenshots show what to look for in making this entry. When you select the "Add Income for this Work" option, the next screen allows you to identify and report the 1099-MISC income.