I received a 1099-NEC with box 1 filled in from my Church for funds for a missions trip we took. Where do I report this?

[chisle]

We used the 1099-NEC full amount for a missions trip we took in 2020, but I don't know how to report the 1099-NEC box 1 contributions to our travel.

[ColeenD3]

If your church is issuing this form, they are stating that you have non-employee compensation; money that you earned. You not only have to pay Federal tax, but Social Security and Medicare taxes. This form is not saying that you contributed money for the travel.

If this is not correct, contact the church.

If it is correct, enter it as below.

Follow these steps to go to the Schedule C section of your return:

1. On the top right corner of TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner).
2. Type in “schedule c” (or for CD/downloaded TurboTax, click Find).
3. Click on “Jump to schedule c”.
4. Click on the blue “Jump to schedule c” link

[Anonymous]

In the 1099-MISC and Other Common Income section there is a choice for Income from Form 1099-NEC.  I entered the info there. When I got to the point of entering expenses, it said it would create a Schedule C if I tried to enter expense. If I said no expenses, it didn't and there was basically one box to enter.  So if there are no expenses, wouldn't that be an easier place to report this?

[ColeenD3]

As long as it is reported on Schedule C, it may not be important how you got there. If there is a problem on review, delete your entry and do it as I originally indicated.

[Anonymous]

Thanks @ColeenD3 . It would be nice if Turbotax asked you what this income was from so it could take you in the right direction. When I said 'No' to the expense question only, it put it in Other Income, so there was no Schedule C.

[ColeenD3]

Something went wrong somewhere. The entire purpose of Form 1099-NEC is to differentiate it from every other type of miscellaneous income. Nonemployee compensation used to be reported on Form 1099-MISC, but taxpayers were including it as other income so, as of 2020, it is now reported on the new form. 

If you look on the back of the form, there are clear instructions that this income is reported on Schedule C.

Box 1. Shows nonemployee compensation. If the amount in this box is SE income, report it on Schedule C or F (Form 1040) if a sole proprietor, or on Form 1065 and Schedule K-1 (Form 1065) if a partnership, and the recipient/partner completes Schedule SE (Form 1040).

Follow these steps to go to the Schedule C section of your return:

1. On the top right corner of TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner).
2. Type in “schedule c” (or for CD/downloaded TurboTax, click Find).
3. Click on “Jump to schedule c”.
4. Click on the blue “Jump to schedule c” link