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Level 2
posted Mar 31, 2021 9:49:43 AM

1099-MISC and 1099-NECs entered in Business section, but 1099-MISC is showing in Personal too (not 1099-NEC)

I entered by 1099-MISC and 1099-NEC in the Business section of TT.  The 1099-MISC also shows up in the Personal section, but not the 1099-NEC.  When I tried to delete the 1099-NEC out of Personal section, it also removed it from the Business Section.

 

My questions are: 1) how can I confirm I'm not duplicating my 1099-MISC income; and 2) why is the MISC handled differently than the NEC (since both are self-employed income sources)?

 

Thanks!

1 5 1624
5 Replies
Expert Alumni
Mar 31, 2021 10:21:23 AM

I would advise you to delete both and start over from scratch. They are not both self-employment incomes. Prior to 2020, SE income was reported on 1099-MISC in Box 7. As of 2020, SE income is reported on Form 1099-NEC and 1099-MISC is used for all non-SE income. 

 

Your 1099-NEC should be reported by entering it onto Schedule C. 

  1. Type "Schedule C" in the search field at the top right hand of the screen.
  2. Select "Jump To Schedule C" and you will be brought to the section of TurboTax where you can enter or have entered your business income and expense information

Your 1099-MISC needs to be reported according to what box the income is in under the Personal Income section. 

 

Under the Wages & Income (or Personal Income )

  • Other Common Income and elect to start
  • Then Click YES to indicate you have a 1099-MISC.
  • Enter the 1099-MISC exactly as it is. Continue.
  • Enter the reason you got this money. Continue.
  • Select None of these apply. Continue.
  • Select No, it didn’t involve work. Continue.
  • Select the tax year for which this specific 1099-MISC was issued. Continue.
  • Select No, it didn’t involve an intent to earn money. Continue.
  • Select No. Continue.

 

 

New Member
Sep 3, 2021 3:26:35 PM

In comparing our 2019 return to our 2020, my wife's 2019 self employment income (the exact same amount) shows up (in the Business Income summary) as both 1099-MISC and 1099-NEC.  In 2020, it shows up only as 1099-NEC.  I want to ensure 1) I didn't make a mistake and got double taxed in 2019, and 2) that the only reason it is not 2020 1099-MISC is the IRS process change you described. 

Level 15
Sep 3, 2021 5:14:10 PM

Income is entered into the program ONLY ONCE ... NEVER enter anything twice.  The new  1099-NEC ( old box 7 of the 1099-MISC form) should be entered in the BUSINESS tab in the Sch C section ONLY  even if you see it again in the Personal tab.  

Level 15
Sep 4, 2021 12:38:25 PM

1) how can I confirm I'm not duplicating my 1099-MISC income;

For a 1099-MISC, regardless of where you enter it, it will "appear" in at least 2 sections, sometimes three. Nothing unusual there at all.

 

2) why is the MISC handled differently than the NEC (since both are self-employed income sources)?

The 1099-MISC for earned income appears to be in the process of being phased out, to be permanently replaced with the 1099-NEC. So while the 1099-MISC for 2020 *can* show self-employed or other earned income, the 1099-NEC is *only* for earned income.

 

Level 15
Sep 4, 2021 2:58:07 PM

Actually the 1099-NEC was resurrected from the archives to live again  to separate the NON EMPLOYEE COMPENSATION  from everything else on the 1099-MISC for a couple of good reasons.

 

1) the deadline for filing the 1099-NEC is 1/31 like W-2 forms  where other things reported on the 1099-MISC  have later filing deadlines which has confused the issuers in the past

 

2) to reduce the confusion on where to enter that income ... almost without exception it needs to be reported on the Sch C (or possibly the F ) and is subject to SE taxes

 

3) makes it easier for the IRS to find missing income reported on the 1040 incorrectly