1099-NEC

[Sdfd157]

I am part of a group that receives products at no cost in exchange for using and reviewing those products. It was stated that I will receive a 1099-NEC for the retail value of the products at the end of the year. I know my value will be over the $600 Threshold, so where is that information entered on my tax forms since I'm not self-employed?? I know I'm responsible for taxes on the value of the products too. Is that tax percentage the same as my regular income or is it taxed differently?? Thanks!!

[Jackstar22]

Hi, 

Even if you didn't receive a 1099-NEC, if the income is over $600 or over, you still need to report the income in the self-employment income section of TurboTax. 

Here is an article about the self-employment tax: https://turbotax.intuit.com/tax-tips/self-employment-taxes/the-self-employment-tax/L8xXjolB4 

If you are self-employed, you are responsible for paying both the employer and employee portions of your Social Security and Medicare tax—a total of 15.3 percent on 92.35 percent of your net earnings from self-employment.

Thank you,

John

CPA

[Sdfd157]

I did read in other cases that the forms ask for Business Info (as in self-employment). I don't have that information, so how do I fill that portion in??

[Jackstar22]

Fill that portion in with as much detail as you can, it is right at the beginning of the self-employment section.