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April 10, 2023
Question

Self Employment

  • April 10, 2023
  • 1 reply
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I received a 1099-NEC for doing a one time job. The company included my expenses in with my wages.  when I used the 1099-MISC and other common income/income from 1099-NEC it told me to fill it under business income/ income and expenses.  this appears to be give me a self employment tax.  I am not "self employed".

do I need to fill in in this category? 

    1 reply

    April 10, 2023

    No.  If the 1099-NEC is not income from self-employment, then you should report the income as other income, which will appear on line 8 of Form 1040. There are two ways to report income as other income in TurboTax.  Both will produce the same result, yet one method involves fewer screens.  Those methods are described below.

     

    Here are the steps to enter the 1099-NEC as other income:

     

    1. To enter other income in TurboTax online, click on Wages & Income, left side of screen. 
    2. Scroll down the page to Less common income, click on the drop-down arrow and select Miscellaneous Income.  
    3. From the list select Other reportable income and respond to the questions on the screens that follow. 
    4. On the screen, Other Taxable Income, you may see information indicating that you should not report a 1099-MISC in this section.  Just ignore that statement and enter your information.  

     

    If you are using TurboTax CD/download, the process is similar.  After selecting the Personal tab, and the Personal Income tab, scroll down the screen to Less Common Income, and select Miscellaneous Income.  Enter your information. 

     

    There is another section of TurboTax that relates to 1099-Misc but you can use it to enter your 1099-NEC too.  This section is Other Common Income.  Please note that when working through the Other Common Income section, you will see a screen asking whether your 1099 represents an intent to earn income/money, and while it may seem counterintuitive to select No, that is the response you need to select.  If you select Yes, TurboTax will report this income as self-employment income, and you will be back in the tax position you want to avoid.  Thus, select No, and continue through the application.

     

    @chribruce57 

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