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1099 NEC

Forum|Forum|5 years ago
February 16, 2021
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I am curious as to why in the turbo tax deluxe program it says " Before you say "yes" if you have 1099 MISCs or 1099 NECs, its better to enter them under 1099 MISC and Other Common Income.

Best answer by JohnB5677

It is not necessarily better, but it's more a mater of what is correct.

The 1099-NEC is used to report independent contractor income. The 1099-MISC is used to report miscellaneous income such as rent or payments to an attorney.

If you post the 1099-MISC under Other Common Income the program will determine if it is taxable, and if it is subject to self-employment tax.

A 1099-NEC typically will be taxable and subject to self-employment tax. The 1099-NEC should be posted to Self-Employed.

JohnB5677Answer

It is not necessarily better, but it's more a mater of what is correct.

The 1099-NEC is used to report independent contractor income. The 1099-MISC is used to report miscellaneous income such as rent or payments to an attorney.

If you post the 1099-MISC under Other Common Income the program will determine if it is taxable, and if it is subject to self-employment tax.

A 1099-NEC typically will be taxable and subject to self-employment tax. The 1099-NEC should be posted to Self-Employed.

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