1099-NEC and 1099-MISC are showing 0 even though I entered 40,000

[Terri Lynn]

Hello Fullera, thank you for joining us!

Yes, this can happen in a couple of scenarios.  If you are using  the Home and Business version of TurboTax, you will not see the 1099-NEC, or 1099 MISC income in the personal income section.  You will see this income in the business income section.   

On the other hand, if you are using TurboTax online, you will need to enter the 1099 NEC or 1099 MISC, with-in the self employment income section. 

For additional information on how to enter your self employment income, see:

• Reporting Self-Employment Business Income and Deductions 
• TurboTax Self Employment Hub 

Please feel free to reach backout with any additional questions or concerns you might have!

Have an amazing rest of your day!

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[KarriC]

I am going to answer this question assuming the following:

• you are self-employed
• the 1099-NEC and 1099-MISC were payments for your self-employed work

If this is the case, then you have a self-employed business! You may not have a storefront, but in the IRS's eyes, you are a business.
This means you need to put the 1099-NEC and 1099-MISC under your Schedule C, or business income. 

To get there, you will go to Wages & income, then select Self-employment income and expenses

That's where you'll enter your self employment income (from forms and also any cash or checks received directly), enter any business expenses and come up with  your net income. 
You will pay Self-Employment tax and income tax on the net income amount.

[cpnyc]

Thanks @KarriC and @Terri Lynn  , if the income is going to show on the business side, then what do I do about a Roth IRA contribution I made then? It is showing in Turbo Tax that I overpaid my Roth IRA because it is not looking at the income from 1099-NEC. Both of these contract gigs were under my name and personal SSN, not a registered business. I do have a separate registered single-member LLC with its own income.

[DianeW777]

The Roth IRA contributions are determined based on your net profit from your self employment.  The income from both 1099-MISC and 1099-NEC should be combined as business income on your Schedule C.  If you do not see that you can delete the actual form entry and then enter the income using 'Other' category. 

Open your TurboTax Online return:

1. Search > type Schedule C > Click the Jump to... link > Edit beside your business > Add or Edit Income for this work 
   • Select this option when entering your income: Other self-employed income, includes cash and checks

For TurboTax Desktop open your return:

1. Select Business tab > Continue > I'll choose what I work on > Business Income and Expense 
2. Continue making your entries until you reach the Business Income screen > Select 'Other Income'

Also, if you had expenses you may have net income less than you expected. If that's the case you may need to withdraw any excess contribution before April 15th, to avoid penalty.

@cpnyc 

[cpnyc]

Thanks @DianeW777, to clarify...

1. I have a single-member LLC

2. I have two 1099-NECs from contract work that are NOT related to my LLC. These were put under my personal SSN.

Am I understanding correctly that even though the income I have from those NECs is NOT related to my primary business, I still have to look at the net income across both #1 and #2 to be able to calculate the Roth IRA contribution? I currently put in a contribution to my ROTH IRA equivalent to the 1099-NEC income because I have no direct expenses I'm attributing to those two contract gigs.

[DianeW777]

Yes, the overall net income from business services (one or more) is used to calculate the allowed Roth IRA contributions.

Here is a quick chart from the IRS: Roth IRA Contributions you can make for 2024

• Maximum contribution is $7,000 ($8,000 if over 50 years of age), or earned income whichever is less

@cpnyc