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Received 1099-NEC for work done as a merchandiser for FDM associates. The amount received was $478. Why this year says I need to fill out schedule C?

I cannot move forward as it continues to take me back to the Federal Income Section as if I am to add more information.  Any idea why this would be?
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5 Replies

Received 1099-NEC for work done as a merchandiser for FDM associates. The amount received was $478. Why this year says I need to fill out schedule C?

I am the person submitting the question.  Also adding this:  1099-NEC forms don't include enough info for us to know where to report the income on your return. All info is there. Payer Name, EIN, #1 compensation. What is the problem?

 

ColeenD3
Expert Alumni

Received 1099-NEC for work done as a merchandiser for FDM associates. The amount received was $478. Why this year says I need to fill out schedule C?

You need to file a Schedule C for any self-employment income of $400 or more.

 

You must pay self-employment tax and file Schedule SE (Form 1040 or 1040-SR) if either of the following applies.

  • Your net earnings from self-employment (excluding church employee income) were $400 or more.
  • You had church employee income of $108.28 or more.

Generally, your net earnings from self-employment are subject to self-employment tax. If you are self-employed as a sole proprietor or independent contractor, you generally use Schedule C to figure net earnings from self-employment.

If you have earnings subject to self-employment tax, use Schedule SE to figure your net earnings from self-employment. Before you figure your net earnings, you generally need to figure your total earnings subject to self-employment tax

 

 

ColeenD3
Expert Alumni

Received 1099-NEC for work done as a merchandiser for FDM associates. The amount received was $478. Why this year says I need to fill out schedule C?

1099-NEC is the replacement for 1099-MISC. It is the same procedure, just a different form that hopefully does not confuse people as much as 1099-MISC always did. Reporting forms always have instructions for the recipient on the back of the form.

 

Box 1. Shows nonemployee compensation and/or nonqualified deferred compensation (NQDC). If you are in the trade or business of catching fish, box 1 may show cash you received for the sale of fish. If the amount in this box is self-employment (SE) income, report it on Schedule C or F (Form 1040 or 1040-SR), and complete Schedule SE (Form 1040 or 1040-SR).

 

You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax. If you believe you are an employee and cannot get the payer to correct this form, report this amount on the line for “Wages, salaries, tips, etc.” of Form 1040, 1040-SR, or 1040-NR.

 

To set up your business:

  1. Open or continue your return.
  2. Search for schedule c and click the Jump to link in the search results.
  3. Answer Yes to Did you have any self-employment income or expenses?
    • If you've already entered self-employment work and need to enter more, select Add another line of work.
  4. Follow the onscreen instructions.

Received 1099-NEC for work done as a merchandiser for FDM associates. The amount received was $478. Why this year says I need to fill out schedule C?

I am adding this to the self employment section.  I have removed and added 8 times now.  I have done this for many years with no issues.  This year continues to say more information required.  I guess I need to talk to a Turbo Tax tech person.  Thanks,

AnnetteB6
Employee Tax Expert

Received 1099-NEC for work done as a merchandiser for FDM associates. The amount received was $478. Why this year says I need to fill out schedule C?

Since you have entered the Form 1099-NEC information through your Schedule C for self-employment, be sure that there is not an extra Form 1099-NEC (maybe even a blank one) that is causing the issue.  

 

Try using the following steps to delete any unused Form 1099-NEC that you see:

  • On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
  • This opens a box where you can type in “1099-NEC” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-NEC
  • Click on the blue “Jump to 1099-NEC” link

This will bring you to the summary of all Form 1099-NEC that you have entered.  Click Delete or the trash can icon next to each one.

 

@simages1

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