Received a 1099 NEC for 2021. This was for money I finally received in 2021 but was for administrative work I did for a business in 2018. Honestly thought I would never receive it. How do I handle this after I enter the amount? TT wants to create a "Business" for this.
Yes, you have to create a "business" to report the income. It's earned income reported on 1099-NEC, so you must report it on Schedule C - Profit or Loss from Business. TurboTax will guide you through "creating" your business in the program.
Thank you. Since this is from prior year 2018 and never reported, and is a one time and done issue.... I saw a question about did I start or close in 2021 and this will be a Yes answer as well. I have question regarding the QBI exemptions. I'm sorry, but I do not understand this. Any advice is appreciated.
Yes, you will answer yes to the question about starting or closing your business since it's a one time job for self employment (independent contractor).
You should answer yes to the qualified business income deduction (QBID) questions. The self employment by design is a business and entitles you to this deduction and TurboTax will calculate it for you.
This is a special deduction that came about with the Tax Cuts and Jobs Act (TCJA) for 2018-2025, to give businesses a special deduction.