1099 NEC- not self employed and dont have a business

[whitedog00]

According to FAQ on IRS website, if you are not self employed and dont own a business, you should report the income from 1099 NEC on line 8i of Schedule 1 (form 1040).  Additional allowable expense on Schedule A itemized deductions.  Problem is I cannot get Turbo Tax software to place this NEC 1099 income on line 8i.  

Can someone please help me do this per the IRS instructions?  thanks

[Mike9241]

what did you do to get the compensation that was reported on form 1099-NEC?  if you performed services for which you got compensated that's self-employment income in most cases.

[whitedog00]

I found this information on the irs.gov site under this article.

Thanks for your response.  I came to the conclusion my 1099 NEC income is just other income. 

Interest, Dividends, Other Types of Income | Internal Revenue Service (irs.gov)

From the IRS article listed above:

"If you weren't an employee of the payer, where you report the income depends on whether your activity is a trade or business. You're in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous."

I feel being a soccer coach for a community league is not continuous (certainly not my full-time job bc its seasonal and few hours) and I don't do it to make a profit as that infers I am trying to sell a product to make money.  So basically, it's just other income.  Would you agree?

[RupeVA]

I have the same problem - I was issued a 1099-NEC from my county in support of my son and his training program for disability.  The software launches you into a schedule C hell that one cannot ignore or escape from.

any ideas?

[PattiF]

You can enter the 1099-NEC this way if it was not received for self-employment

1. Wages & Income
2. Other Common Income
3. Select Income from a 1099-NEC
4. Enter the payer's name
5. EIN Number
6. Amount you received
7. Describe the reason for this 1099-NEC = State what it was for
8. Does one of these uncommon situations apply?
9. Click This is not money earned as an employee or self-employed individual, 

[mbakk84]

What does it mean when they ask for a business code?  I taught for a program through a nonprofit agency in our state and received a 1099-NEC.  I have done this before, however, it is sporadic and not continuous.  In the past, I have not needed to input a business code and this year it is asking for one.  What should I enter?

[JamesG1]

Asking for a business code means that the software wants the income reported as self-employment income on Schedule C Profit or Loss from Business.  This income would be subject to self-employment tax as well as income tax.

Income not subject to self-employment may be entered as follows:

• Go to Federal / Wages & Income / Other Common income / Form 1099-NEC.
• At the screen Describe the reason for this 1099-NEC, enter the reason for this income.
• At the screen Does one of these uncommon situations apply?, select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby.

The entry will be reported:

• on line 8z of Schedule 1 of the Federal 1040 tax return, and 
• on line 8 of the Federal 1040 tax return.

@mbakk84 

[Bidensuxdick]

My wife works part time and received a 1099 NEC . She does not have a business .

Should she claim her expenses on a schedule C?

[PattiF]

If she claims her expenses on a schedule she is considered to be self-employed. She will need to pay the FICA Social Security and Medicare,  taxes on her Schedule C profits. If she has expenses from her work, it seems as if she might be self-employed and need to file a Schedule C.

Please see this TurboTax Information about Form 1099-NEC.

@Bidensuxdick 

[RupeVA]

Did not work - The last thing you suggested did not match what came up in Turbo Tax.  (it said I wasn't an employee, but it was for a hobby?)  Therefore, Sched C has re-appeared.

[AliciaP1]

If you follow the prompts in TurboTax to enter the 1099-NEC under Other Common Income, you can enter the correct type of income on the Does one of these Uncommon Situations apply? screen.

If the only situation that applies to you is None of these apply to me, you are considered self-employed by the IRS and are required to report the income and expenses on Schedule C.  See Am I considered self-employed? and What self-employed expenses can I deduct? for more information for a Schedule C.

@RupeVA 

[RupeVA]

thanks much.

It's not really a sporadic hobby, it's for special assistance in education for my son.

I did click as you directed, thanks.  it is still saying I'm linked to a schedule C, and asking me to identify whether I  "materially participated" in the operation of this business... but it's not a business, so should I say no?

thank you for your patience and help.

Mike

[KrisD15]

You need to select the "This was not money earned as an employee or self-employed individual," and also that it was ONLY gotten in 2022. 

These are questions TurboTax asks, not the IRS. 

If this is NOT Self-Employment income, select those answers to stop TurboTax from linking Schedule C. 

[dolphincsa75]

This was absolutely the answer I was looking for. Thank you! I am able to pay the taxes I own without having to claim I am self employed, which I am not, and not having to provide a Schedule C. Thanks again!!!

[dolphincsa75]

You can enter the 1099-NEC this way if it was not received for self-employment

1. Wages & Income
2. Other Common Income
3. Select Income from a 1099-NEC
4. Enter the payer's name
5. EIN Number
6. Amount you received
7. Describe the reason for this 1099-NEC = State what it was for
8. Does one of these uncommon situations apply?
9. Click This is not money earned as an employee or self-employed individual,