I received a 1099-NEC with an amount in Box 1. I do NOT have an expenses with this. When I answered the question "do you have an expenses", I answered "no" and it completed the section. It did not create or prompt me for to complete a Schedule C. So, it looks like I am paying taxes on the full amount in Box 1 and there doesn't seem to be a place where it gave me credit for paying the employer side of the taxes.
So, two questions: Do I always need to fill out a Schedule C even if there are no expenses? It is correct how TurboTax did it?
Shouldn't I get a credit for the employer tax instead of paying the fulls self-employment tax? Thanks!
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Yes, you should have a Schedule C to receive a federal deduction for half of the self-employment tax paid. TurboTax automatically reports your SE tax on Schedule SE and also calculates the deduction that goes along with it. The form will automatically be filled out and attached to your return if you have a Schedule C.
Please follow these steps in TurboTax to add your Schedule C:
TurboTax will automatically deduct half of the self-employment tax, even if you do not have any expenses. You can confirm this by going to Preview my 1040. On Line 14, Deductible part of self-employment tax, in Part II, you will see half of your self-employment tax is deducted.
If you need help previewing your 1040, please follow these steps in TurboTax:
Lastly, please make sure to delete your previous input of your 1099-NEC so it is not on your tax return twice.
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