1099 NEC but I'm not self employed

[Bill6004]

My Daughter worked for two small businesses that have sent her a 1099 NEC instead of a W-2. How do I include that income if she is NOT self employed. Meaning she doesn't have a business of her own. She is just a college kid that worked over the summer. Turbo Tax seems to really want her to file a Sch C but she is technically not a business owner.

[rjs]

Your daughter is a self-employed business owner and she had two clients last summer. She has to report her self-employment income on Schedule C.

[JamesG1]

IRS 2021 Instructions for Forms 1099-MISC and 1099-NEC page 7 states:

Specific Instructions for Form 1099-NEC

File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.  At least $600 in:

• Services performed by someone who is not your employee (including parts and materials) (box 1); or
• Payments to an attorney (box 1).

The IRS presumes that 1099-NEC income is self-employment income that is subject to self-employment income computed on Schedule SE as well as income tax computed on IRS Form 1040.

IRS TurboTax Online Self-employed can report Schedule C and self-employment income.

@Bill6004

[Helper24]

If it's not a large amount she might try putting it on line 'Z' of the Schedule 1.  A schedule C looks for a business name and an EIN number which she probably doesn't have.  If she needs to file the schedule C examine all of the possible expenses that could reduce the income amount.

[rjs]

You don't need an EIN to file Schedule C. Just tell TurboTax that you don't have an EIN. And you can use your own name as the business name. TurboTax asks you if you want to do that.

If the income is $400 or more and you put it on line 8z of Schedule 1, you will get a notice from the IRS telling you that you have to file Schedule SE and pay self-employment tax.