The 1099 NEC is replacing the 1099 MISC and TT is treating this as income as before I was automatically considered a business. What gives??

Form 1099-NEC reports NonEmployee Compensation. If you are not a W-2 employee, you are by default, self employed. On the back of the form, you are instructed to report Box 1 income on Schedule C or other business.

 

Box 1. Shows nonemployee compensation. If the amount in this box is SE income, report it on Schedule C or F (Form 1040) if a sole proprietor, or on Form 1065 and Schedule K-1 (Form 1065) if a partnership, and the recipient/partner completes Schedule SE (Form 1040).

 

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.