We received a 1099 NEC, on our return, it is showing up under the 1099 NEC area and under business items. Where should this be reported?

[Bsch4477]

It is reported as self employment income usually. What was the source of income. 

[gilg1117]

My husband helped a friend with woodworking projects. Our friend owns a painting company.

[Bsch4477]

That would be self employment income and be reported on Sch C as a business. 

[CatinaT1]

A 1099-NEC is for non-employee compensation.  You will enter this as self employment income.  You will need to file a Schedule C and pay SE taxes.  You may also enter any expenses related to your work to reduce your income. 

  

To file a Schedule C, here are the steps: 

1. Sign in to your account and select Pick up where you left off 
2. At the right upper corner, in the search box, type in schedule C and Enter  
3. Select Jump to schedule C  
4. Follow prompts, you might be prompted to an upgrade if you have expenses 

Click the link for more detailed info on  Reporting Business Income and Expenses. 

[gilg1117]

I should not enter it under the 1099 NEC area then, correct?

[gilg1117]

If I delete it from the 1099 area, it is completely gone from Turbo Tax.

[gilg1117]

I got it to report under the correct area now, under business income. Thank you.

[PattiF]

No, you should keep it as a 1099-NEC. After you enter the information on Form 1099-NEC, a Schedule C will be created where the expense can be entered to be deducted from the income. 

Mileage, supplies, and tools are some of the expenses that your husband may have.

Please see this TurboTax Help for more information about the 1099-NEC.

[gilg1117]

When I entered it under the 1099 NEC area, I got an error that it is reporting twice.

[gilg1117]

When I am performing the final check Turbo Tax says. Check this entry.  Form 1099-NEC Worksheet HERB'S Turbo tax says this: Form 1099-NEC Worksheet (HERB'S PAINTING, LLC): A link to schedule C and a link to either Schedule Form 8919 (wages) or the other income statement have been selected to report nonemployment compensation. Only one can be selected. You must remove the link that is not applicable.

[ThomasM125]

You can report it in either area, but shouldn't report it in both. 

[gilg1117]

When I am performing the final check Turbo Tax says. Check this entry.  Form 1099-NEC Worksheet HERB'S Turbo tax says this: Form 1099-NEC Worksheet (HERB'S PAINTING, LLC): A link to schedule C and a link to either Schedule Form 8919 (wages) or the other income statement have been selected to report nonemployment compensation. Only one can be selected. You must remove the link that is not applicable. How do I remove it from 8919?

[gilg1117]

Can anyone help me with the above question?

[MarilynG1]

You only want your 1099-NEC income reported as Business Income on Schedule C.  If you have also reported it as personal income, delete the duplicate entry there.

To avoid confusion with 'linking' you can delete your 1099-NEC entry, and just enter it as Business Income.

Type 'Schedule C' in the Search area, then click on 'Jump to schedule c' to get to this area.