1099-NEC forms are processed as if I am the owner. Why?

[jwrob03]

What is TurboTax phone number?

[DoninGA]

If you received the income on the Form 1099-NEC for providing a service to someone then you are self-employed and do have a business as an independent contractor or sole proprietor. 

[VolvoGirl]

1099NEC is 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 are considered to have your own business for it.  YOU are the business.

You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it.  The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

You use your own name and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all  income is at risk.  After you put in your income and expenses  if your net profit is $400 or more you will pay 15.3% for 2013  Self Employment tax in addition to your regular income tax.  The Schedule SE will be automatically filled out for it.

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Where to enter expenses

https://ttlc.intuit.com/questions/3636848-where-do-i-enter-my-self-employment-business-expenses-like...

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

[DawnC]

When you’re self-employed, you may receive a 1099-NEC, 1099-MISC, or 1099-K from the person or business that paid you.   But even if you don’t receive a 1099-NEC, 1099-MISC, or 1099-K, you’re still responsible for reporting all your income and expenses from self-employment on your tax return.   Am I self-employed?

Ways to contact us:  

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Contact Support

[jwrob03]

VolvoGirl,

Thanks for the response.  

My wife and I file jointly. 

I volunteer for an organization, and my wife's travel is paid for when she accompanies me on my volunteer business.  The amount spent on my wife is taxable, and is reported to us on a 1099-NEC form.  However, Turbotax assumes that I am the self-employed person and there is no way to indicate that it is my wife, not me.  Can this be added to the list of modifications in time for YE2024?

John

[jwrob03]

DawnC,

Thank you.  I think you are missing my point. 

A 1099-NEC may ALSO be issued when the person is NOT self-employed.  That is the situation with my wife.  We can and  do report the income just fine, except that Turbotax assumes that I am the owner of the entity that paid us the income - which is not true.  Can this be fixed?

[DawnC]

A 1099-NEC is for self-employment.   It reports non-employment compensation (NEC).  The form generates a Schedule C for the name on the 1099-nec.  That person is also the owner of the Schedule C business for tax purposes.   If the 1099 is for your wife, then make sure you indicate that when you enter the form - - that will make your wife the owner of the business.   If there is a Schedule C on your return, there has to be an owner of that business.  The owner is whoever's name is on the 1099-nec.    See image below.   

If the 1099-nec is not correct, ask the issuer to give you a corrected tax form.    

[jwrob03]

DawnC and V olvoGirl,

Good news:  I called Turbotax and was assisted by Jen.  The 1099-NEC worksheet has a field in the top left corner "Name(s) Shown on Return".  Turbotax inserted my name and I could not figure out how to change it to my wife's name.  Jen instructed me to right-click on the field, and I was then able to change the name to my wife's.

Thank you.