Question

When a fulltime teacher receives a 1099-NEC to help cover supplies, are the supplies deductible.

Forum|Forum|3 years ago
March 8, 2023
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TurboTax Self Employed Online

Are you an employee that receives a W-2 from the issuer of the 1099-NEC? If you are not an employee, the 1099-NEC would be considered self-employment income and reported on Schedule C. With self-employment income you can write off supplies as an expense. You will also pay self-employment tax on self-employment income.

If the 1099-NEC is not related to self-employment and is a periodic payment, it is not subject to self-employment tax, but you can not write off supplies related to the income.

@lindemannconcern

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L

lindemannconcernAuthor

Hi, Brittany. Thanks, much, for the response.

Let me be a little more specific so I know I understand your info. My spouse teaches 4K full-time (not self-employed) at a charter school. The program being used by the charter school is overseen by South Carolina First Steps (defined as "...the state’s only dedicated, comprehensive early childhood initiative focused on getting children ready for school and life success. We partner with families, early educators, and communities statewide to support the success of children from birth through age five."). That's who issued the 1099-NEC for, as you noted, periodic payments to help out with out-of-pocket classroom costs. So it's clearly not self-employment income. Check!

So, do we just not enter it in Turbo Tax so the program doesn't think there's self-employment income?

B

BrittanyS

Since the issuer reported the 1099-NEC, it must be reported as income on the tax return. To report the income, follow these steps in TurboTax:

Click Wage & Income
Scroll down to Other Common Income, Click Start next to 1099-NEC
Click Add another 1099-NEC
Enter 1099-NEC info and click continue
Choose This is not money earned as an employee or self-employed individual; it is from a sporadic activity or hobby

@lindemannconcern

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