Form 1099-NEC for 2025

[Butorj1]

Inputting the 1099-NEC has changed quite a bit for 2025.  I have been receiving 1099-NEC's for a few years now and never had to complete Schedule C (Profit or Loss from Business) form before.  I earn the money by shopping and delivering groceries to personal residences.  When choosing an Occupation Code for the work, nothing is really close.  Do I just select whatever might make sense and complete the Schedule C with as minimal amount of data as possible.  Also, my job includes tips which could be nontaxable, but again, hard to categorize the job in that section as well.  Really struggling here.  Any tips appreciated.

[pk]

@Butorj1 , generally 1099-NEC requires a Schedule-C -- you are doing a sole-proprietor business of  something sales / delivery .  You need Schedule C  because  your gross  income  and your associated expenses for this income stream needs to be reported.  Note that the net income ( exclusive of  tips ) -- some 92% -- will attract  Self-Employment tax -- equivalent of FICA taxes  -- called SECA at 15.3%  -- Social Security and Medicare .

For business /activity code , choose something that seems nearest to what you actually do.

 Do you need more help on this ?

[MelindaS1]

For the purpose of the qualified tips deduction, your line of work most likely falls into one of these three buckets. See - IRS - List of occupations that receive tips: 

Treasury Tipped Occupation Code, provides a three-digit code and descriptions for the occupations listed within the proposed regulations. The proposed regulations group the occupations into eight categories:

• 100s – Beverage and Food Service
• 200s – Entertainment and Events
• 300s – Hospitality and Guest Services
• 400s – Home Services
• 500s – Personal Services
• 600s – Personal Appearance and Wellness
• 700s – Recreation and Instruction
• 800s – Transportation and Delivery

For Instacart, I would select 500 - Personal Services, but you may know more about your specific situation. 

1099-NEC is always reported on Schedule C (Profit or Loss from Business) as self-employed business income. To view exactly how this was reported in your prior year tax returns, see TurboTax - How do I view, download, or print a prior-year tax return?

More info from TurboTax FAQs about self-employed tax reporting:

What self-employed expenses can I deduct?

What's the difference between self-employment income and other income?

No Tax on Tips: How It Works in the One Big Beautiful Bill

[VolvoGirl]

@Butorj1   How have you been reporting it before?  Where did it show up on your return if not on Schedule C?  Do you deliver though a service like DoorDash, InstaCart or something?   Who do you get a 1099NEC from?  

1099NEC is for self employment income.
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to Premium version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.

How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Where to enter business expenses
https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-self-employment-busine...

IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center