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Level 1
posted Jan 20, 2024 6:21:07 AM

1099 NEC

When filing my 1099 NEC from my employer, can my expenses be more than my income? And can I file it the same time I’m filing my W2 from my other jobs. Or should I file them separately? 

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1 Best answer
Expert Alumni
Jan 21, 2024 5:59:09 AM

As a self-employed individual, you may claim all expenses related to this income. In some cases, your expenses may exceed your income, the IRS expects you to make a profit within a reasonable length of time (three out of five years). So, keep good records. Xmasbaby0 provided several references to help you complete the entries for your Schedule C Self-Employment business.

 

@Rhoward84 

2 Replies
Level 15
Jan 20, 2024 6:40:41 AM

If you have a 1099NEC you do not have an employer---you have a client.    NEC means "non-employee compensation."  You are an independent contractor for that client.

 

You will be paying self-employment tax on that income for Social Security and Medicare.

 

ALL of your income including your W-2's and the 1099NEC go on the same tax return.  Since you need to prepare a Schedule C you will need to use online Premium software or any version of the CD/download.

 

 

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

 

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

 

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

 

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

 

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

 

 

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

 

 

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

Expert Alumni
Jan 21, 2024 5:59:09 AM

As a self-employed individual, you may claim all expenses related to this income. In some cases, your expenses may exceed your income, the IRS expects you to make a profit within a reasonable length of time (three out of five years). So, keep good records. Xmasbaby0 provided several references to help you complete the entries for your Schedule C Self-Employment business.

 

@Rhoward84