Should I file under self-employment or other common income when filing 1099-NEC?

It depends.

 

Did you earn the money with the intent of running a business and making a profit?  If so, then yes, this would be considered self-employment income.  If not, then it would be reported as other income not related to self-employment income.  Your intent is a major factor used to determine whether the income is part of a business or not.

 

Please see the link below for additional guidance as you determine how your income should be treated.

 

Business or hobby

 

If you are reporting this income as self-employment income (meaning you are running a business with the intent to make a profit), you will do the following in the Federal interview section: 

1. Select Income & Expenses 
2. Select Self-employment income and expenses 
3. Proceed through the screens to enter your information 
4. When you see the following for income, make sure to select Other self-employed income. Includes 1099-K, cash, and checks. 

If it is not from self-employment, you would enter the information as follows: 

1. Select Income & Expenses 
2. Go to the  All Income section and select Less Common Income 
3. Select Miscellaneous Income

You will then select Other reportable income to enter your income from your 1099-NEC.  Be sure to mark that it was not earned as part of business.

How and where do I mark that it was not earned as part of business?  There is only a description box and a amount box under Other reportable income.

If you are not prompted to answer anything about a business, you do not need to worry.  It will not be included in any self-employment activity but instead will be reported as other income.

 

It will show up as Other Income on Schedule 1 as part of your Other Income section on line 8.