9/19/23 Hi. It feels like you return to the Turbo community family each year, like Thanksgiving time. I'm back.
Here we go:
(Home and Business version) I'm self-employed. Solo private practice. Finally getting to the 2022 Returns. (had filed extension) The previous year (2021) Return is loaded up. I'm ready to start entries for 2022- Business Income. The previous year 2021 column shows 1099-NEC and 1099-MISC. I don't receive or know what a NEC is. I receive 1099-MISC's from healthcare insurances. The entered amount for both NEC & MISC are the same. (The MISC is correct amount and it's entered same in NEC entry.)
Did I report two of the same income amounts in my 2021 Tax Return? That would be a huge mistake.
I've used Turbo for years and don't recall seeing NEC in my Returns, and no where in all my business documents.
I appreciate so much if someone can explain what's happened. And if I have a correction to make now.
Thank you!
Massachusetts
Here's a couple links
What is a 1099NEC
https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US?uid=lmpws798
1099NEC vs 1099Misc
https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/difference-1099-nec-1099-misc-self-employed-income/L4xBhUS9d_US_en_US?uid=lmpwu1zm
What box is the income in on your 1099Misc? Several years ago they split out box 7 from the 1099Misc to a new 1099NEC.
Actually I would forget about entering the 1099NEC or 1099Misc. Just enter the total as Other self employment income or as Cash or General income. You don't need to enter each 1099NEC or 1099K. You can enter all your income as Cash. Only the total goes to schedule C.
Check your schedule C line 1 to see if the right amount was reported.
Here's a couple links
What is a 1099NEC
https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US?uid=lmpws798
1099NEC vs 1099Misc
https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/difference-1099-nec-1099-misc-self-employed-income/L4xBhUS9d_US_en_US?uid=lmpwu1zm
Thank you Volvo. I only receive 1099-MISC with Box 6 entries. I have never received any document for 1099-NEC. I do not know how a figure was entered for NEC in the 2021 Return. I'm just seeing now since I've just started the 2022 Return.
My question is in regards to the 2021 Return, not the 2022 that I'm working with now.
I never enter anything for NEC. I never saw the term before.
In 2021, it shows the same income amount under NEC & MISC. There shouldn't be any NEC.
So is there a mistake in the 2021 Return?
Does that help clarify what I'm asking?
Thanks again.
Sorry, I don't know how Turbo Tax lists the 1099Misc and 1099NEC on the income summary pages. But as I said check your 2021 1040 schedule C and see if the right income is on line 1.
Forgot. I add on to 1099's a separate income line for cash, co-payments, anything received directly from clients. Ins. companies are the 1099's.
I checked the 2021 MISC entry and it's correct.
I'll need to load up the 2021 Turbo program to see how this entry was made, etc.
In general, the bottom line figures for 2021 seem correct.
I think I'm set for now. Thank you!
Thank you Volvo Girl for your always thoughtful posts and advice.
My question came when seeing the entry for my 2021 Return and an entry for 1099-NEC. I did not pull out my 2021 return file as I wanted to. But I originally saw NEC in the 2022 as I'm working on that return right now - on the page that eventually shows lots of totals for "previous" year compared with 2022. So that's where I saw NEC (separate from a 1099-MISC entry) for the first time in all these yrs of Turbo. I guess I'll be looking at that comparison page next year to see what "previous year 2022" shows when compared with 2023.
I do need to enter each 1099-misc. for my business income. It's pre-populated from the previous year so I only enter the new amount. The 1099 total with other sources of business income are entered in Schedule C. The total is adjusted by Expenses to create the Net Profit amount that is then entered on Page 1 of return.
I appreciate the replies as they help think this all through.
Thank you!
Forgot your question - I checked the amount showing in Turbo 2021. The amount is correct with my own records. It just looked like it was being entered twice when it showed up in that comparison page in 2022 Turbo. It would seem that the 2021 return was using just one figure, the MISC amount, when calculating the whole Return.
Thanks again.