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1099 NEC

Forum|Forum|2 years ago
January 20, 2024
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When filing my 1099 NEC from my employer, can my expenses be more than my income? And can I file it the same time I’m filing my W2 from my other jobs. Or should I file them separately?

Best answer by PatriciaV

As a self-employed individual, you may claim all expenses related to this income. In some cases, your expenses may exceed your income, the IRS expects you to make a profit within a reasonable length of time (three out of five years). So, keep good records. Xmasbaby0 provided several references to help you complete the entries for your Schedule C Self-Employment business.

@Rhoward84

X

xmasbaby0

If you have a 1099NEC you do not have an employer---you have a client. NEC means "non-employee compensation." You are an independent contractor for that client.

You will be paying self-employment tax on that income for Social Security and Medicare.

ALL of your income including your W-2's and the 1099NEC go on the same tax return. Since you need to prepare a Schedule C you will need to use online Premium software or any version of the CD/download.

https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

PatriciaVAnswer

As a self-employed individual, you may claim all expenses related to this income. In some cases, your expenses may exceed your income, the IRS expects you to make a profit within a reasonable length of time (three out of five years). So, keep good records. Xmasbaby0 provided several references to help you complete the entries for your Schedule C Self-Employment business.

@Rhoward84

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