If your job pays you on a 1099-NEC or 1099-MISC then you are responsible for paying self-employment taxes on your tax return. This is because you are considered an independent contractor of your company, not an employee. This TurboTax article provides information about how this impacts your taxes.
As an independent contractor, it is your responsibility to keep track of any expenses so you can file a complete and accurate tax return that gives you the best result possible. To enter your business expenses:
- Type Schedule C in the Search box
- Select the Jump to link
- Answer Yes to Did you have any self-employment income or expenses? and answer the questions until you get the What kind of expenses did you have for your business? screen. Select your expenses, then Continue
- If you've already worked in this section, select Edit next to your business, then Add expenses for this work
- Select Start next to an expense type that you had
- Enter your expense description and amount, and answer any other questions we ask
- If you had more than one expense for a type, select Add another group to include them all
- If you have additional expenses of other types, repeat steps 3 through 5 to add more
While no documentation is required to enter any expenses in the TurboTax system, the IRS requires you to maintain your records for at least three years. The IRS website states the types of records that should be kept.
