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As you walk through the steps of entering the 1099-NEC, you will be given options of what the income is for. Select Hobby income and this will then a checkmark on your 1099-NEC worksheet will be placed in the Other Income Box so it won't be reported as self-employment income. It will then be reported on Schedule 1 line 8z as Non Employee Compensation from 1099-NEC.
Marking the hobby box does not make it hobby income, it just means it was not self-employment income or any of the other types of income listed there.
OR -
To enter a Form 1099-NEC that is not for self-employment -
Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Click on Income & Expenses
Scroll down to Other Common Income
On Form 1099-NEC, click the start or update button
On Income from Form 1099-NEC, click the start or update button
On the screen Did you get a 1099-NEC?, click on Yes
On the screen What type of income is on your 1099-NEC?, click on Income that should've been reported on a W-2 and Continue
On the screen OK, let’s get some details from your 1099-NEC, enter your information and Continue
On the screen Did you also receive a W-2 from (name)?, enter Yes and Continue
On the screen OK, this income will be labeled as wages and Continue
Thank you!
When I did this it brought my return down by around $500 for $2266 in income. Does that sound right?
@melindablay wrote:
When I did this it brought my return down by around $500 for $2266 in income. Does that sound right?
Yes, because there probably was not any federal taxes withheld from the income reported on the 1099-NEC. So your income increased but your federal taxes withheld did not increase with the additional income reported.
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