Question

I was sent a 1099-NEC for am the cost of a membership I need to do my job. How can I report this as an expense?

Forum|Forum|4 years ago
March 7, 2022
1 reply
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The NEC is a several thousand dollars but is not actually income I’ve received. I don’t want to be taxed on this since I didn’t receive it and it’s actually an expense I would have to pay to do my writing work. My job entails maintains discussion boards that are only accessible with a membership. The cost of the membership is reflected in the NEC as income.

TurboTax Self Employed Online

AliciaP1

Since you cannot do your job without the access to this membership, this is indeed considered compensation and is correctly reported on the 1099-NEC. You, however, also have the expense of the membership in order to perform your services.

You need to report the 1099-NEC as self-employed income and the same amount as a Subscription Expense for the business.

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