Hi,
I recently started at a church that pays when I serve in the church band. Received a 1099-NEC but when I enter it in the business income section it prompts me to describe my business to which I enter, "band member for Sunday church services". Then it prompts me for info about my business. I don't have a business though. How should proceed with entering this additional income correctly? Thanks.
Technically since you're self-employed you do have your own business so just complete the information as you can there are no wrong answers.
Ok thanks. I guess it doesn't matter that this isn't my main job. I usually play twice a month.
Another followup, in the 1099-NEC section should this type of activity be marked as a hobby activity vs having to input business information?
You can claim it as hobby income, but you cannot deduct any applicable expenses you may incur.
If you report you are self-employed, even as a side-job, you are eligible to deduct business expenses.
You can see What self-employed expenses can I deduct? to help identify potential deductions.
Ok, If I go the route of not using hobby income but I don't have a business set up. Am I just using my personal info in the business sections?
Yes, that is the correct information to use for reporting.
I believe I have filled it out correctly. I selected when prompted for a business code I used the "9999999" code for miscellaneous and selected "cash method" as my accounting method. Also, selected "No' to playing an active role in the business (I don't think I serve over 500 hours a year) and "no" for qualified business income. Hopefully, I am not missing anything.
@AliciaP1 thanks again for the help