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February 10, 2025
Question

1099-NEC

  • February 10, 2025
  • 1 reply
  • 0 views

I received a 1099 NEC from a company because I did work for them.  When I enter the form it wants me to create a schedule C form.  It is not my company.  When I enter the the amount on 1099 NEC my refund changes a little but then after filling out the schedule c, I now owe a lot of money.  I currently have my own LLC and I fill out the schedule K form and so on.  Why is this 1099 NEC trying to say it is my company?  Need some assistance on how to complete this form.

 

    1 reply

    KrisD15
    February 10, 2025

    Form 1099-NEC is Non-Employee Compensation which is the same as Self-Employment. 

     

    Since you were not an employee of the company you performed work for, that company did not withhold FICA tax (Social Security). 

    When that happens, you, as the self-employed taxpayer, pay the FICA as "Self-Employment" tax. 

     

    You do file Schedule C and also can claim expenses you incurred for that income. 

     

     

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