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April 11, 2025
Question

1099-NEC

  • April 11, 2025
  • 1 reply
  • 0 views

I received a 1099-NEC from a previous employer for a real estate commission I earned in 2020.

TurboTax is forcing me to complete a Schedule C, for which I do not have answers because the form does not apply to me. TurboTax seems to think I own a business that generated the 1099-NEC for 2020. I did not own a business in 2020, or ever. I was a "private contractor" in 2020. How do I get TurboTax to stop demanding a Schedule C for a business I didn't own.

    1 reply

    April 16, 2025

    If I understand your situation, you received a commission for sales in 2020, that was recently received in 2024. The form itself indicates nonemployee compensation which is another way of saying self employment. It must be reported as such and self employment tax will be included in your tax. Commission also indicates you did intend to earn money and it did involve work.

    1. The 1099-NEC created the Schedule C and this link will take you there to add any possible expenses you had in 2024.
    2. Where do I enter Schedule C?
    3. The business name will be your name and the business address will be your address.
    4. Schedule C Instructions (Principal Business Activity Codes) You can choose to use 999999 to save time.
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