You received Form 1099-NEC for non-employee compensation (you are considered an dependent contractor, not a business owner). The IRS considers income earned as an independent contractor, self-employment income. Refer to the IRS website Independent contractor defined for further explanation.
You are considered self-employed and will complete Schedule C which is how you report your self-employment income. The good news is that you can deduct ordinary expenses that you incurred making this income. Follow the steps below to enter your income.
- Open TurboTax
- Select Wages & Income
- Select Self-Employment Income and Expenses
- TurboTax will guide you through the interview screens to help you enter your income and expenses.
For more information, refer to the TurboTax article What is a 1099-NEC?
For additional information, review the TurboTax help articles: What self-employed expenses can I deduct? and How do I report income from self-employment?
You will also be subject to self-employment taxes. Self-employment taxes and deduction are calculated on Schedule SE. For additional information, please see the TurboTax article Self-Employed Federal Income Taxes.
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