1099-NEC Income Reporting

[wgc013579]

I received a 1099-NEC for periodic work done as an independent contractor that is not in a self employed trade of business.   According to an IRS FAQ website dated 11 October 2024, this income should be reported on Schedule 1, line 8J, Activity not for profit.   Turbotax shows the income on Schedule 1, Line 8Z.   While the end result is the same, is there a way to move the income reporting from Line 8Z to Line 8J, or do I need to manually complete the form by downloading Schedule 1 from the IRS website? 

I am using Turbotax Deluxe on a Windows PC.  

thanks

[rjs]

Here's how to enter the income so it will be reported on Schedule 1 line 8j.

• Go to Federal Taxes > Wages & Income.
• Click "I'll choose what I work on."
• On the screen "Your 2024 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen click the Start or Update button for "Hobby income and expenses."
• You don't enter the actual 1099-NEC, just the amount of income.

BUT, "periodic work done as an independent contractor" sounds an awful lot like self-employment. What type of work did you do? Where exactly on the IRS web site did you see that it should be reported as an activity not engaged in for profit? Can you post a link?

[SharonD007]

The IRS considers pay from periodic work as an independent contractor, self-employment income. Refer to the IRS website Independent contractor defined for further explanation.

You are considered self-employed and will complete Schedule C which is how you report your self-employment income. The good news is that you can deduct ordinary expenses that you incurred making this income.  Follow the steps below to enter your income.

1. Open TurboTax
2. Select Wages & Income
3. Select Self-Employment Income and Expenses
4. TurboTax will guide you through the interview screens to help you enter your income and expenses.

For more information, refer to the TurboTax  article What is a 1099-NEC?

For additional information, review the TurboTax help articles:  What self-employed expenses can I deduct?  and How do I report income from self-employment?

You will also be subject to self-employment taxes. Self-employment taxes and deduction are calculated on Schedule SE.  For additional information, please see the TurboTax article Self-Employed Federal Income Taxes.

[Edited 3/23/25|8:55PM PST]

@wgc013579