1099-NEC

[brennandog]

When I enter my consulting income (say for eaxmple 30K) on my 1099-NEC's under Business Income section it gets transferred to a C and generate SE form and I pay SE tax on it as expected..... However if I enter it under Personal Income section as 1099-NEC, it gets labeled as other income and does NOT transfer to a  C or a SE Tax form despite the fact that it is untaxed self-employment income. I understand the 1099-NEC can be used for other rare instances, but I would think consulting income would be the rule not the exception, Why is it not linking it to taxable self-employment Income. I do have W-2 income as well - but shouldn't the 1099-NEC's generate a C and SE. Assuming no business expenses or deductions etc, I would think it would come out the same...but makes a difference of about 3K in taxes due? Is this a glitch that it is not transferring the income from 1099-NEC to form C when entered under "personal" not "business", it is still Self Employed income? I'm using Desktop version Home and Business.  Thank you

[AnnetteB6]

Income reported on Form 1099-NEC for consulting should be reported on Schedule C and be subject to Self-Employment tax.  To be certain that your income is reported properly, you should enter the Form 1099-NEC through your Schedule C instead of in the Personal Income section of your return.

There was indeed an issue being addressed where TurboTax was having trouble linking a Form 1099-NEC to a Schedule C automatically.  It should be resolved now.    

[akatereynolds]

What if the 1099-NECs interfere with the ability to take the Child and Dependent Care Credit? 

All of my 1099-NECs are attached to my business, so even though I own the business it isn't registering as earned income (haven't had an issue in the past, but I also haven't successfully determined what might be different this year). As a result, I can't take the Child and Dependent Care Credit even though I have that earned income and a net profit. Should I be filing a separate form of what I paid myself in draws last year? I've never had to do that in the past.

[DaveF1006]

To clarify, are you filing your business as a sole proprietor on a Schedule C?

@akatereynolds

[lrs5]

So, does this mean that if we have multiple 1099-NECs and we enter them as a self-employed business and deduct all business expenses, we do not enter them again under personal income when it asks if you have received any 1099's? When I enter it in both places (business & personal sections), it appears to add taxes twice.

[GeorgeM777]

Yes, that's right.  Enter the 1099-NECs only once.  You probably entered them in the Self Employment section under Income & Expenses (TurboTax online) and that's the correct place to enter such income.  Do not enter the 1099-NECs in any other category, otherwise, the income amount will double as you are seeing. 

@Irs5

[Gene47]

Yes, there is a glitch. You have to get into the Form C and work all areas and then it seems to work out fine. To work around I would delete the W2, input all 1099s  & complete the form  C. Then go back and in put the W2 last.

In addition, when your form is checked for areas of incompleteness and says your ok; you need to preview each major page, especially the State for any unmarked info box. Like almost every software program everything you input doesn’t always stick. 
I wish you success!

[lrs5]

Oops I guess this also means that if I realized that I posted it in both areas last year, I would need to amend those taxes since I probably double paid taxes on that year as well.

[Gene47]

Review last years and see what actually stuck.

The program worked Bette last yesr.

it’s possible to double expenses by error so , I would think you may have 2 different schedule C’s.

Hopefully you won’t have to file an amendment.