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Returning Member
posted Jan 18, 2021 9:03:47 AM

1099 NEC for Both Spouses From Same Payer

My wife and I file jointly and we both received a 1099 NEC from the same payer.  I'm having trouble entering the second one correctly through TurboTax Home & Business.  I enter the first 1099 NEC and then go to enter the second and it updates the 1099 NEC for the first one, and enters nothing for my spouse.

 

Am I doing something wrong?

0 5 2987
5 Replies
Level 15
Jan 18, 2021 11:24:38 AM

If you each received the 1099-NEC for the same business and want to report them separately so that self employment tax is applied equally for each of you then report 2 schedule C’s. To differentiate them add “1” after one business name and “2” after the other and split income and deductions between them. 

Level 1
Feb 3, 2021 6:02:31 PM

That doe not seem to work on TurboTax

Level 1
Feb 3, 2021 7:29:02 PM

Same here. It won't take the number in both. only one...

Level 1
Feb 3, 2021 7:48:40 PM

Got it to take it... I went to business 1 and entered (2) 1099 NEC forms. Split it down the middle and then added $1 to one while taking $1 from the other so they were different amounts.

Then I went back to Business 2 and added the 2nd 1099 NEC there with the lesser amount and VIOLA! It stole it from the Business 1 and left the larger 1099 NEC in place. 

 

So in short... Enter in both halves into the first business as separate transactions. Then enter one half int to second business and it will automatically remove it from the first business.

Expert Alumni
Feb 4, 2021 12:48:39 PM

1099-NEC

The Form 1099-NEC can be removed due to this experience. You can enter your cash sales without using the Form 1099-NEC if you choose. 

 

The income can be entered directly, without using the 1099-NEC . The following steps will help.

  1. Sign into your TurboTax account > Select Wages & Income
  2. Scroll to Self-Employment Income and Expenses > Edit/Add
  3. Select Add/Edit beside the self-employment activity
  4. Enter your Additional Income receipts for 2020 (see image below)
  5. Retain your Form 1099-NEC with your files.  

Delete the Form 1099-NEC you previously entered. The IRS does not required the actual form entry, only that all income is included in your return.

 

If you prefer, you can also enter your email for notification of the update by clicking here,  then scrolling to 'please update here' to enter your email.