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IRS considers anyone who receives a Form 1099-NEC to have a "business" because they are not an employee and no tax was withheld from your pay.
You are either an employee or self-employed (a "business"). It's just the way they describe it.
This is a good thing, Self-employed persons are allowed to deduct expenses. Employees cannot. Any expenses you claim will lower your tax bill or increase your refund. So deduct any work -related expenses such as mileage, tools and supplies.,
The ultimate guide to tax deductions for the self-employed.
A 1099NEC is for self employment income. Yes you are the owner of your own self employment business. You are in business for yourself. Use your own info. The people or company that pays you is your customer or client. You need to fill out schedule C for self employment business income. You are considered to have your own business for it. YOU are the business.
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. Here's a Schedule C https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.
How to enter self employment income
Here is some IRS reading material……
IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center
Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf
Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf
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