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Does a 1099-NEC or 1099-MISC mean I'm self-employed?

by TurboTax Updated 3 weeks ago

Take a look at your form. A 1099-NEC having an amount in box 1 and 1099-MISC with an amount in boxes 1, 5, 9, or 10 is a good indicator that it's self-employment income.

Whether you’re a sole proprietor, an independent contractor, a consultant, or a freelancer, you’re probably getting some or all of your income reported on a 1099-NEC, 1099-MISC, or 1099-K. You have flexibility to work the way you want, but it also means the government considers you to be self-employed—or even a business.

Follow these instructions to enter a 1099-NEC and/or 1099-MISC form. After you enter the info from your form, we’ll ask you a few questions to make sure it’s for self-employment. If not, we’ll link it to the correct income section of your return.

1099-MISC unrelated to self-employment

A non-work 1099-MISC would be for things like:

  • Prize money
  • Lawsuit settlements
  • Research studies
  • Other

Here's how to enter a 1099-MISC that you may have received for another reason.

After you enter the info from your form, we’ll ask you a few questions to determine what type of 1099-MISC it is and link it to the correct income section of your return.

Key points on 1099-NEC or 1099-MISC and other self-employment income

When you’re paid this way, there’s no withholding taken out of your income, which means you’ll pay both self-employment tax and income tax.

A benefit of being self-employed is that it enables you to have lots of write-offs, so make sure to enter all your expenses. This helps you reduce the taxes you might owe or increase your refund. We’ll help you get every possible tax break you deserve.

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