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I received a 1099-NEC for Nonemployee Compensation.

Forum|Forum|3 years ago
January 24, 2023
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I've added this info on my Turbo Tax, but it is now asking "Select the business that generated this income or add a new business. I did this as an individual, not as a business.

TurboTax Deluxe Online

Best answer by Kat11_2

The work you did that generated the 1099-NEC was contract work. That means that you weren't an "employee" of the folks you did the work for.

That said, you are considered self-employed for this income. Your "business" is you. You can use your SSN to identify yourself. You'll be required to pay self-employment tax on income over $400. Income tax will be owed on all of the income, as well.

TurboTax will generate the proper forms for your filing. The FAQ I'm linking below will explain in more detail.

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

Kat11_2Answer

The work you did that generated the 1099-NEC was contract work. That means that you weren't an "employee" of the folks you did the work for.

That said, you are considered self-employed for this income. Your "business" is you. You can use your SSN to identify yourself. You'll be required to pay self-employment tax on income over $400. Income tax will be owed on all of the income, as well.

TurboTax will generate the proper forms for your filing. The FAQ I'm linking below will explain in more detail.

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

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

B

BrittanyS

The 1099-NEC would be issued to an employee if you perform work for the business in an amount over $600.

As @Kat11_2 stated, you are considered self-employed for this income and a Schedule C will need to be completed.

To enter self-employment income into TurboTax Online you will follow these steps:

Select Wage & Income from the left-hand side of the screen
Scroll down to see all income. Select the Self-Employment section
Click start next to Income & Expenses
Continue through the interview questions.

By claiming self-employment income, you can also write off a variety of business expenses you paid for the work performed. A few examples of expenses would be: