1099-NEC

Forum|Forum|5 years ago
January 26, 2021
1 reply
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I'm part of a teacher program in my state where we receive stipends twice a year. We are expected to complete 50 hours of professional development, which includes attending meetings, workshops, and other events in order to receive the stipend. I used to receive a 1099-MISC for this and have gotten my taxes done via an accountant the past couple of years. My tax situation hasn't changed, so I'm just looking to save money!

I'm unsure how to file this with TurboTax. I don't own a business and I don't know how to classify this 1099-NEC form (second job, "other," etc.). The check comes directly from the state comptroller's office.

Any ideas on how I can do this properly?

1099

ToddL99

Level 13

Since these payments are directly related to your main work or career (teaching), you will have to report them as "business income" on Schedule C - Profit or Loss from Business. This is the only place you can properly report payments made to you on Form 1099-NEC.

Any net profit from Schedule C is subject to both income tax and employment taxes. If you use the online TurboTax Self-Employed program (Home & Business if CD/Download), you can claim the expenses you incurred to generate this income. Examples of those expenses would be meeting, workshop or conference fees, mileage to attend those event and supplies.

How to File Taxes with IRS Form 1099-NEC

By using the online TurboTax Self-Employed program (or Home & Business CD/Download), you can claim expenses and eliminate or reduce any tax due on the Form 1099-NEC income.

mgironda1Author

Level 2

Ok. My wife and I pay estimated taxes each year because it's a large stipend that goes untaxed. I just wanted to make sure the program was understanding this correctly. Thanks!