1099 NEC

Forum|Forum|4 years ago
January 26, 2022
4 replies
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I received a 1099-NEC from my employer for mileage reimbursements. When I run the error check, Turbo Tax keeps prompting me fill out schedule C with information I don't have, i.e. Principle Business Code, Business Name, Accounting Method, Material Participation Boxes, etc. I'm not self-employed and I don't have my own business. I'm not sure how to proceed. Any suggestions?

Best answer by DaveF1006

Let me point you to a different direction so that Turbo Tax will not require you to fill out a Schedule C but you will need to report this as wages and you will need to pay your uncollected social security and Medicare taxes as part of this reimbursement.

Log into Turbo Tax
Wages and Income
Other Common Income
Form 1099-NEC>start
First question say yes. if it asks to upgrade, pick deluxe for now if you are not there already. if you are in a premier version, this is fine.
now enter your 1099 NEC information
Next screen will ask the reason, put in mileage reimbursement
Next screen says does one of these uncommon situations apply? Here select My employer reported this extra money on a 1099-NEC but it should have been reported on a W-2.
Next screen regarding 8919,select I received a Form W-2 and this Form 1099-NEC, but all the income reported on this Form 1099-NEC should have been included on my Form W-2 from XXX.
The next couple of screens will tell you that this will be reported as wages but your return will contain a form 8919 that will report your uncollected taxes and Medicare taxes in your return. This will keep you from having to report this as a separate business in a Schedule C.

RBBrittain

Alumni - Champ

The 1099-NEC (Non-Employee Compensation) is self-employment income and should be claimed on Schedule C (or if no business expenses, on Schedule C-EZ).

If you also receive a W-2 from this employer, your mileage reimbursements (to the extent reportable) should have been incorporated into your W-2.

Barcinelli

Level 2

If I get a 1099-NEC for working at a charity that pays me, can I deduct the milage to/from that location?

DaveF1006Answer

Level 15

Log into Turbo Tax
Wages and Income
Other Common Income
Form 1099-NEC>start
First question say yes. if it asks to upgrade, pick deluxe for now if you are not there already. if you are in a premier version, this is fine.
now enter your 1099 NEC information
Next screen will ask the reason, put in mileage reimbursement
Next screen says does one of these uncommon situations apply? Here select My employer reported this extra money on a 1099-NEC but it should have been reported on a W-2.
Next screen regarding 8919,select I received a Form W-2 and this Form 1099-NEC, but all the income reported on this Form 1099-NEC should have been included on my Form W-2 from XXX.
The next couple of screens will tell you that this will be reported as wages but your return will contain a form 8919 that will report your uncollected taxes and Medicare taxes in your return. This will keep you from having to report this as a separate business in a Schedule C.

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MBullDog

Level 2

I also received a 1099-NEC for mileage reimbursement. I'm trying to go this route, but I did not receive a W-2 from them. I do not consider myself as self employed. I received W-2's from other employers. How do I reconcile this income? Thanks.

Teresa532

Level 2

You said, "I received W-2's from other employers." What happened with other employers does not affect the person who issued you a 1099. Do you get a W-2 from him? What was the reimbursement for, if you did not work for him.

If you worked for this particular person/company and they did not issue you a W-2, then you are self-employed for this income.

Please advise what should I do to correct prior years 1099-NEC duplicated reporting? I have reported the same amount on both Sch. C (business) and Sch.1 (Other income).

Thanks!

Lynda Moore

Level 2

Filing a 1099NEC for my grandson and it ask for Business Name, Code, Etc. He does not have a business.

It is also asking for a Business C Form

VolvoGirl

Level 15

A 1099NEC is for 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 need to fill out schedule C for self employment business income. You are considered to have your own business for it. YOU are the business.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. Here's a Schedule C https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

Schedule C line B Business Code is a 6 digit number for your activity. Here are the IRS instructions for Schedule C. Business codes start on page 18. If you can't find a code that applies, you can enter 999999.

http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

chuck2195

Level 2

I am the Charmain of my retiree group, (this is a voluntary non-paying position). Two maybe three time per year I attend a conference that is part of the educational/information part of the position. Attendance is necessary to keep all the retirees in the group updated with any changes benefits. example, medical, pensions, 401k etc. filing and procedures. We have a per deim of 46 dollars per day and 20 dollars for our return day. Many times a meal may be furnished and that is deducted from the per-deim. It does matter where you participate in the meal or not it is available and therefore it is deducted from the per-deim. The rates of per-deim fall well under what is outlined in the I.R.S. codes. Why do I receive a 1099-NEC and why am I required to file. There is not a good explanation when I enter this info into my Turbo-Tax.

GeorgeM777

Level 11

Because the money you receive is income, and out of an abundance of caution the payor has decided to send all payees, regardless of amount paid, a 1099-NEC. Based on what you have included in our post, it does not appear that this is a form of self-employment on your part. Thus, you can report it as "other income" in TurboTax. Here are the steps to follow to report the income as other income.

To enter other income in TurboTax online, click on Wages & Income, scroll down the page to Less common income, click on the drop-down arrow and select Miscellaneous Income.
From the list select Other reportable income and respond to the questions on the screens that follow.
If you are using TurboTax CD/download, the process is similar. After selecting the Personal tab, then Personal Income tab scroll down the screen to Less Common Income and select Miscellaneous Income. Enter your information.

While you received a 1099-NEC, you my receive references in the above screens to 1099-Misc. Just ignore those references and report your 1099-NEC as described above. Your 1099-NEC income will appear on Schedule 1 to Form 1040 and also on Form 1040, line 8 as other income.

@chuck2195

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