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April 15, 2023
Question

I received a 1099-NEC for working at a nursing IV clinic. Turbotax wants me to say I own a business? Is this activity a qualified trade or business under Section 199A?

  • April 15, 2023
  • 1 reply
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I only worked 2 shifts and Turbo Tax is saying I own my own business.  Is this OK to file that way?  Im confused

1 reply

April 16, 2023

Yes. It is OK to file as self-employed if you receive a Form 1099-NEC.

 

The IRS considers anyone who is paid to provide a service to be a self-employed business owner if they were not an employer.

 

Being a “business” in IRA terms simply means you were not employed by someone, and no taxes were taken out of your pay. As a result, income, Social Security and Medicare taxes are all added to your tax bill because there they not withheld on Form 1099-NEC. (Some 1099-NECs do have withholding, but that’s extremely rare).

 

You can claim business expenses to lower your tax burden.

 

See The ultimate guide to tax deductions for the self-employed.

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