You need to report your 1099-NEC as self-employment income (as an independent contractor) and deduct the expenses you paid on the Schedule C. The loss from Schedule C will show on line 3 of Schedule 1 and will reduce your total income on your Form 1040. The amount on line 8a of Schedule 1 is to report Net Operating Losses from previous years.
To enter your 1099-NEC in TurboTax please follow these steps:
- Open or continue your return in TurboTax
- Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results
- Answer Yes on the Did you have any self-employment income or expenses? screen
- If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for
- Answer the questions on the following screens until you arrive at Let's enter the income for your work
- Select the form that applies to your situation and Continue
- You can enter the info from your 1099 form on the following screens
For more information on optimizing your deductions against self-employment income see What self-employed expenses can I deduct?
@Carlton
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