How to do I file an 1099-NEC

You can either enter your 1099-NEC as nonemployee compensation so it flows to a Schedule C (self-employment income) or enter it so it flows to Other Income. The 1099-NEC form specifically reports Nonemployee Compensation, which you may have gotten in previous years on a 1099-MISC. So, if you worked as a freelancer or contractor last year, you probably got a 1099-NEC reporting how much money you were paid in box 1.

For tax purposes, self-employment income includes any part-time businesses or "side work" performed in which you are in business for yourself, rather than another person. You are also considered self-employed if you engage in business-like activities where you intend to make a profit.  It is important to note that if it is considered Other Income, you will not be able to deduct any expenses that relate to your 1099-NEC income. 

To enter your 1099-NEC, please follow the steps below: 

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Click Add a 1099-NEC.
5. Enter the information as shown on your form. 
6. On the page titled Guess what? You can deduct expenses for the example work choose Yes, I have expenses to deduct (if you would like it to flow to a Schedule C) or No, I don't have expenses related to this income (if you would like it to flow to Other Income. 
7. If you choose to have this income flow to a Schedule C, you will see a page titled Self-employed 1099-NEC Income. You can select the Schedule C you are inputting this income for. If this is a new Schedule C for this year, you can add a new business on this screen.