My wife is a teacher and has for the last few years done presentations and training seminars for a local university. She is not employed by them, however, receives compensation. In the past we have received 1099-MISC, this year its 1099-NEC. When I enter it into the turbotax software it treats this as if she has her own business and then starts asking about the business name and address. It also states that a schedule C form needs to be filled out. I'm little confused as she doesn't have a business. On top of that turbotax also advises that I cannot efile do to some of my forms. From other posts on this site I believe it has to do with the 1099-NEC form. Am I doing something wrong?
She might not feel like she is running a business---but as far as the IRS is concerned she is a self-employed, independent contractor---running her own business. 1099NEC ('"non-employee compensation") is the document issued to those who are independent contractors--working for clients-- and who are not having Social Security, Medicare or taxes withheld from their pay.
She will need to pay self-employment tax for Social Security and Medicare, as well as ordinary income tax. She will need to prepare a Schedule C for any business expenses she has had, such as supplies for handouts for her students, computer (?), office supplies she had to purchase, etc. etc. Does she have a home office dedicated to preparing for her work as a presenter for the school?
https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes
https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922
https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax
https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c
https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct
https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-
You will need to use online Premium or any version of the CD/download in order to prepare a Schedule C.
The issues with e-filing with a Schedule C will be resolved within the next several days.
No, you are not doing anything wrong. Form 1099-NEC has been around since 2020. Prior to that, income that is now reported on Form 1099-NEC was reported on Form 1099-MISC. The university that your wife has been doing work for should have been issuing her a 1099-NEC the past several years, and your wife should have been filing Schedule C as an independent contractor.
She might not feel like she is running a business---but as far as the IRS is concerned she is a self-employed, independent contractor---running her own business. 1099NEC ('"non-employee compensation") is the document issued to those who are independent contractors--working for clients-- and who are not having Social Security, Medicare or taxes withheld from their pay.
She will need to pay self-employment tax for Social Security and Medicare, as well as ordinary income tax. She will need to prepare a Schedule C for any business expenses she has had, such as supplies for handouts for her students, computer (?), office supplies she had to purchase, etc. etc. Does she have a home office dedicated to preparing for her work as a presenter for the school?
https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes
https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922
https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax
https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c
https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct
https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-
You will need to use online Premium or any version of the CD/download in order to prepare a Schedule C.
The issues with e-filing with a Schedule C will be resolved within the next several days.
No, you are not doing anything wrong. Form 1099-NEC has been around since 2020. Prior to that, income that is now reported on Form 1099-NEC was reported on Form 1099-MISC. The university that your wife has been doing work for should have been issuing her a 1099-NEC the past several years, and your wife should have been filing Schedule C as an independent contractor.