why 1099-NEC question is talking about a farm ?

Forum|Forum|5 years ago
February 25, 2021
2 replies
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I'm adding a Business 1099-NEC (Educational Service Business) and the question in TurboTax is:

"Did your receive income for this farm reported to you on Form 1099-NEC?"

It seems a bug. Nobody saw a simple bug like this?

The business version is expensive and a basic section is incorrect. What do I pay for?

TurboTax Home & Biz Windows

WendyN2

No, it is not a bug. The program just wants (needs) to know if it is in relation to a farm in any way as these forms are new and they system wants (needs) to know if it should generate a Schedule F for you.

damdamAuthor

Thank you for your reply but if I said No to this question, it is back to the initial menu (Update button...to add 1099-NEC) and I do NOT see any other way to enter a 1099-NEC.

Any suggestion?

The only way I found it is to say Yes...even it is not related to a farm.

linaj20201

Let's try to enter the 1099-NEC this way:

In TurboTax online,

Open your tax return, select Pick up where you left off
From the upper right menu, select Search and type in 1099nec and Enter
Select the Jump to 1099nec
Follow prompts

Then

From the upper right menu, select Search and type in schedule c and Enter
Select the Jump to schedule c
Next screen, "Your 2020 work summary" under your self employed business, select Review
Continue to enter related expenses and other required information

The net profit amount will show on line 8 of Schedule 1 and Form 1040.

Shannon B1

Farms are treated like small businesses, so their income is reported on Form 1099-NEC. However, farm income goes on Schedule F, not Schedule C. That's why TurboTax is asking this question.

As long as you don't select "I owned a farm" on the "Does one of these uncommon situations apply?" screen your income won't be reported as farm income.

@umamiking