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I worked for a lady that own a daycare and she sent me a 1099NEC. It wasn’t my business

 
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2 Replies
Shannon B1
Expert Alumni

I worked for a lady that own a daycare and she sent me a 1099NEC. It wasn’t my business

You likely received a 1099-NEC from the daycare because you received $600 and were not considered an employee but an independent contractor.  Independent Contractor are treated as self-employed for tax purposes.  The daycare owner is required to file a 1099-NEC to report payments over $600 to independent contractors.


You will need to include the amount on the 1099-NEC on your tax return. However, you can deduct any expenses related to your daycare work (e,g. business mileage, supplies, uniforms). Check out this TurboTax Help Article for a list of deductible expenses.

 

This link will take to directly to the section in TurboTax Online to enter your Form 1099-NEC.  Here's a TurboTax Help Article with the step by step instructions.  

 


 

I worked for a lady that own a daycare and she sent me a 1099NEC. It wasn’t my business

That is self employment income.  And yes 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. You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to Premium version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.


How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

 

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.

 

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center


IRS Guide to Business Expense Resources
https://www.irs.gov/forms-pubs/guide-to-business-expense-resources


Turbo Tax Self Employed Tax Hub
https://turbotax.intuit.com/personal-taxes/self-employment-taxes


Turbo Tax Self Employment info
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

 

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