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KD8121
March 20, 2025
Question

Is non employee compensation (NEC) not considered earned income for IRA deductions??

  • March 20, 2025
  • 2 replies
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Is NEC compensation considered earned income??

    2 replies

    DawnC
    DawnC
    March 20, 2025

    Yes, it is considered self-employment income, which is earned income.  

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    VolvoGirl
    VolvoGirl
    March 20, 2025

    A 1099NEC is usually for self employment income.  Self employment is filed on Schedule C.   The Net Profit on Schedule C minus 1/2 the self employment tax is earned income.   

     

    How to enter income from Self Employment

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

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