1099 NEc

Forum|Forum|4 years ago
March 25, 2022
2 replies
19 views

I received form 1099 NEC. I worked as a warehouse person and was not self employed. Do I enter this amount as wages or other income, not self employement. the amount was 6351 with no taxes withheld?

MayaD

Alumni - Intuit

Form 1099-NEC is used to report any compensation given to non-employees by a company

Your employer is treated you as self employed. If you do not agree with this classification you can speak with your employer to request to be treated as an employee and given a W-2.

If your employer doesn't agree, your can file Form SS-8 to request a determination of the status.

As self employed you can claim your expenses. To be deductible, a business expense must be both ordinary and necessary.

An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. Irs.gov

To report your self employment Income and expenses:

Log in to your account.
Select Federal from the left menu.
Go to Wages and Income then select Income and Expenses.
Go to Self-employment income and expenses and click start. you'll be asked some general questions about your business. After you answer them, you’ll be taken to enter your Income Expenses.

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Hal_Al

Level 15

The IRS considers anything on a form 1099-NEC to be self employment income. Enter the 1099 income, at Other Common income / income from a 1099-NEC . TurboTax (TT) will complete Schedule C for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any "profits" greater than $432. These types of payments are frequently done this way. Your "employer" is not the only one.

You may have to upgrade to the Self Employment version of TT. If you have no expenses to deduct, there's a chance you may be able to use TT Deluxe or Premier. Enter your income at the 1099-Misc screen (even if you didn't get a 1099-misc).

In TurboTax (TT), enter at:
- Federal Taxes tab

- Wages & Income

-Scroll down to:

- Other Common Income

-Income from Form 1099-NEC

There is a way to contest the “employer’s” classification of you as a contract employee (self employed). That is to pay your share of the Social security/medicare tax on form 8919. In TurboTax, after you enter your 1099-NEC, select "My employer reported this extra money on a 1099-NEC but it should have been reported on a W-2" from the drop down list at the "Does one of these uncommon situations apply" screen.

You also have to submit form SS-8 and the IRS will determine whether you or the employer pays the employer portion of the SS tax. You will probably also upset your employer, because the IRS may contact him about whether or not he properly paid wages.

Form SS-8 is not in TT but is here ===>>> http://www.irs.gov/pub/irs-pdf/fss8.pdf
See this IRS site ===>>> http://www.irs.gov/taxtopics/tc762.html