#1099nec

A 1099-NEC on a schedule C is not unearned income.   What other income is there  on the 1040 lines 2-5?  Or 1099-MISC?

A 1099-NEC can be classified as a Schedule C or Other Income. Typically, kiddie tax will be applied to Other Income, because it could be unearned or earned income. It would be best to allocate his 1099-NEC to a Schedule C to prevent kiddie tax.

For tax purposes, self-employment income includes any part-time businesses or "side work" performed in which you are in business for yourself, rather than another person. You are also considered self-employed if you engage in business-like activities where you intend to make a profit.

To input your 1099-NEC, please follow the steps below: 

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Click Edit next to your 1099-NEC.
5. On the page titled Guess what? You can deduct expenses for the example work choose Yes, I have expenses to deduct.
6. On the page titled Self-employed 1099-NEC Income select the Schedule C you are inputting this income for. If this is a new Schedule C for this year, you can add a new business on this screen.

To confirm your 1099-NEC was linked to your Schedule C, please follow the instructions below:

1. Open your return.
2. Search for Sch C with the magnifying glass tool at the top of the page.
3. Click on the Jump to Sch C link at the top of the search results. 
4. On the page titled Your 2020 self-employed work summary, you should see your 1099-NEC listed with the corresponding amount. 
5. Click review next to the income from your 1099-NEC. 
6. Follow the on-screen instructions on the following pages. 

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