1099

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Hi, I received a 1099-nec form for contract work and I made $630, is it necessary for me to file? Also, it is putting me as a business owner, which I was not. How do I go about this? Thank you.

Ask the Experts - SelfEmployed - Feb 2024

MinhT1

Alumni - Intuit

Yes. You are required to file a tax return because you received more than $400 of self-employment income.

Income reported in box 1 of form 1099-NEC is self-employed income. You are considered as self-employed and in IRS terms, are operating a business doing what you do to earn the income reported on the form 1099-NEC. You enter your form 1099-NEC in TurboTax and TurboTax will populate a Schedule C after you enter all your information. You can deduct any expenses you paid related to this activity (such as supplies, car expenses, etc.)

Self-employed income is subject to income tax AND self-employment tax (calculated at 15.3% on 92.35% of net self-employed income).

You do not own a business in the common meaning of the word. So in TurboTax answer that you use the cash method, that you do not have an EIN. You use your own name as the business name and your personal address as the business address.

You’ll need to use TurboTax Online Deluxe (or TurboTax Premium if you have expenses to deduct), or any version of TurboTax (CD/Download).

You can read this TurboTax article for more information.

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Anonymous_

Level 15

You may not be a "business owner" but, based on the 1099-NEC, you are self-employed and need to file a Schedule C to report the income from your contract work.