A 1099-NEC can be accounted for in 2 places,Personal Income, Other Common IncomeBusiness, Business Income and ExpensesHow do I know which place to put the money??

K

kenfairley

Question

1099-NEC

Forum|Forum|5 years ago
April 23, 2021
1 reply
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A 1099-NEC can be accounted for in 2 places,

Personal Income, Other Common Income
Business, Business Income and Expenses

How do I know which place to put the money??

Tax Advice

Hal_Al

Employee

The IRS considers anything on a form 1099-NEC to be self employment income. Enter the 1099 income, at Business income, unless it was for something other than work you did . TurboTax (TT) will complete Schedule C for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $432. These types of payments are frequently done this way. Your "employer" is not the only one.