NEC1099

[sunflowers3]

I am doing my daughters taxes again and I have never had to enter a NEC1099 before.  She worked for Amazon as an independent contractor.  She earned over $3000.00 and no taxes withheld.  Where does all this information get entered?  I so far entered it on Schedule C but how about her mileage that she was told is deductible?  Personally I think I messed up because after I entered the NEC1099 information her refund really increased.

[VolvoGirl]

The refund increased?  Sure it wasn’t a tax due?

1099NEC is self employment income.

Yes you are the owner of your own self employment business.  You are in business for yourself.  Use your own info.  The people or company that pays you is your customer or client.  You are considered to have your own business for it.  YOU are the business.

You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it.  The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

You use your own name and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all  income is at risk.  After you put in your income and expenses  if your net profit is $400 or more you will pay 15.3% for Self Employment tax in addition to your regular income tax.  The Schedule SE will be automatically filled out for it.

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version.  Or use any of the Desktop installed programs.  All the Desktop programs have the same forms.  You just get more help and guidance in the higher versions.

How to enter income from Self Employment

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

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

Turbo Tax Self Employed Tax Hub
https://turbotax.intuit.com/personal-taxes/self-employment-taxes

Turbo Tax Self Employment info
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

[JamesG1]

IRS form 1099-NEC income received as an independent contractor should be reported as self-employment income on Schedule C of the Federal 1040 tax return.

In TurboTax Online, create the self-employment activity by following these steps:

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Wages and Income.
• Under Your income and Expenses, click the down arrow to the right of Self-employment.
• Click to the right of Self-employment income and expenses.

The IRS form 1099-NEC income will be reported as income to the self-employment activity.

Your daughter will be allowed to report ordinary and necessary expenses (perhaps including a standard vehicle mileage allowance) against the income.

See also this TurboTax Help and here.

[ColtonZayne]

You’re on the right track; enter mileage under Schedule C deductions.