1099 NEC

[SoManyForms]

I am an Amazon Vine member and get free items in exchange for honest reviews.  I purposely kept the amount of goods low last year until I know exactly how it will impact my taxes.  I have now done my 2022 taxes and according to my paid TurboTax software, I pay $0 additional taxes until my 1099NEC amount is over $20,000.  It is seemingly impossible for me to have entered this information incorrectly so is it possible that TurboTax has a problem with their calculations?  I am claiming my 1099NEC as sporadic activity / hobby income.

[tagteam]

Did you actually enter the figure (if so, where) or did you use the import feature?

[SoManyForms]

I manually entered various amounts into Box 1 - Nonemployee compensation.  I listed "Product Review" as the reason.  Finally, I checked the uncommon situation of hobby income.

I have NOT yet entered the payer's Federal ID number.  I cant imagine that would impact the calculation, but thought I should mention

[fanfare]

if you have positive hobby income, that is taxable.

$20,000 is an IRS reporting threshold for  Amazon.

Your reporting threshold is > 0.

[SoManyForms]

The problem appears to be TT calculations.... I simply caught the fact that my tax obligation doesn't change ACCORDING TO TURBOTAX when I enter any number smaller than $20,000.  

[tagteam]

Where, exactly, are you entering the figure in the program?

[SoManyForms]

TT Deluxe - Download for Mac

Federal Tax

-> Wages and Income

->1099 Misc and Other Common Income

->Income from Form 1099 NEC

->Box 1- Nonemployee Compensation $20,000

[tagteam]

I am not familiar with the Mac version, but it appears as if this is being entered as income from self-employment rather than miscellaneous (other) income. If you received a 1099-NEC, that would typically be the proper treatment.

[William1962]

howdy, sorry to ask you but did you figure this out, im having the same issue, thanks

[RobertB4444]

Do you have any other entries on your tax return that would keep income from being taxed?  If your deductions are still greater than your income this miscellaneous income would not effect your taxes unless it was enough to go over the deduction threshold.  And if your 1099-NEC income is entered as hobby income then it would not have any self-employment tax and therefore would not change your tax return any at all.

@William1962