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New Member
posted Jan 23, 2023 7:28:45 PM

I received a 1099-NEC for Nonemployee Compensation.

I've added this info on my Turbo Tax, but it is now asking "Select the business that generated this income or add a new business. I did this as an individual, not as a business.

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1 Best answer
Level 15
Jan 23, 2023 7:49:31 PM

The work you did that generated the 1099-NEC was contract work.  That means that you weren't an "employee" of the folks you did the work for.  

 

That said, you are considered self-employed for this income.  Your "business" is you.  You can use your SSN to identify yourself.  You'll be required to pay self-employment tax on income over $400.  Income tax will be owed on all of the income, as well.

 

TurboTax will generate the proper forms for your filing.  The FAQ I'm linking below will explain in more detail.

 

Does a 1099-NEC or 1099-MISC mean that I'm self-employed? 

2 Replies
Level 15
Jan 23, 2023 7:49:31 PM

The work you did that generated the 1099-NEC was contract work.  That means that you weren't an "employee" of the folks you did the work for.  

 

That said, you are considered self-employed for this income.  Your "business" is you.  You can use your SSN to identify yourself.  You'll be required to pay self-employment tax on income over $400.  Income tax will be owed on all of the income, as well.

 

TurboTax will generate the proper forms for your filing.  The FAQ I'm linking below will explain in more detail.

 

Does a 1099-NEC or 1099-MISC mean that I'm self-employed? 

Expert Alumni
Jan 24, 2023 8:34:35 AM

The 1099-NEC would be issued to an employee if you perform work for the business in an amount over $600.  

 

As @Kat stated, you are considered self-employed for this income and a Schedule C will need to be completed.

 

To enter self-employment income into TurboTax Online you will follow these steps:

 

  1. Select Wage & Income from the left-hand side of the screen
  2. Scroll down to see all income.  Select the  Self-Employment section
  3. Click start next to Income & Expenses
  4. Continue through the interview questions.

By claiming self-employment income, you can also write off a variety of business expenses you paid for the work performed.  A few examples of expenses would be:

 

  • Advertising Cost
  • Commissions
  • Supplies
  • Legal Fees
  • Repairs and maintenance
  • Office Expenses

You will want to make sure to maintain an accurate record of all expenses claimed on the return.  

 

For more information on self-employment income and expenses please see the following links:

 

Reporting Self-Employment Income and Deductions

What is Form 1099-NEC?