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Then how do you get paid or get income? Cash usually fits for everything. Cash would be for checks, credit card payments etc.
Are you entering information for a business that carries inventory and reports cost of goods sold? That it typically the type of business that would use Accrual accounting.
The most common method is the Cash method- reporting income in the year actually received it and reporting expenses in the year actually paid.
If you received a Form 1099-NEC, that usually means you were self-employed and should report your income and related expenses on Schedule C.
Click here for more information about reporting self-employment income and deductions using TurboTax.
A 1099NEC is for self employment income. You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it. The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.
You use your own name and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is at risk. After you put in your income and expenses if your net profit is $400 or more you will pay 15.3% for Self Employment tax in addition to your regular income tax. The Schedule SE will be automatically filled out for it.
You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version. Or use any of the Desktop installed programs. All the Desktop programs have the same forms. You just get more help and guidance in the higher versions.
How to enter income from Self Employment
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