My wife is working with a friend on her business. She got a 1099 NEC. I have filled in the information, and I had to fill out a Schedule C. Two things on this: 1. I don't have a principal business code (required on schedule C). 2. All of the people my wife works with have said they don't use one either. The business owner doesn't even know what it is. They are using TurboTax, and they are putting in the NEC. Am I doing something wrong?
The Business Code is a 6 digit number for your activity. Here are the IRS instructions for Schedule C. Business codes start on page 18.
http://www.irs.gov/pub/irs-pdf/i1040sc.pdf
See the FAQ on Business Codes,
https://ttlc.intuit.com/questions/1899356
Thank you for your reply. I have already read this and selected the most appropriate one. I'm just concerned that nobody else my wife works with has had to do this - even though they are using TurboTax and they are entering a 1099-NEC.
Page C-3 of the IRS instructions for Schedule C asks for a business code:
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
@dlf4567 wrote:Thank you for your reply. I have already read this and selected the most appropriate one. I'm just concerned that nobody else my wife works with has had to do this - even though they are using TurboTax and they are entering a 1099-NEC.
They might be reporting it wrong and not on Schedule C for self employment income. Or maybe they filled out schedule C in a previous year and it transferred over.