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If I was sent a 1099-nec non employee compensation as my payment was $675, why am I being asked to create a scheduled C when I do not own the business?

 
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1 Reply
JulieS
Expert Alumni

If I was sent a 1099-nec non employee compensation as my payment was $675, why am I being asked to create a scheduled C when I do not own the business?

Because you are being paid as an independent contractor, you are considered self-employed. 

 

If this is a sideline for you and you do not want to deduct any business expenses related to this income you can enter the amount without filing a Schedule C.

  1. Select Federal from the left side menu.
  2. Select Wages and Income toward the upper left.
  3. Scroll down or expand the list, find Other Common Income.
  4. Expand the section, find Form 1099-NEC and click Start to the right. 
  5. Answer Yes to, Did you get a 1099-NEC?
  6. On the question, Do You Want to Enter Your 1099-NECs Now? select Enter 1099-NEC.
  7. Enter the information from the form on the next screen, click Continue.
  8. On the screen, Does one of these uncommon situations apply? select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby (this is not common).
  9. Click Continue, then Done.

 

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