Skip to main content
January 27, 2024
Solved

1099-NEC confused

  • January 27, 2024
  • 2 replies
  • 0 views

My wife is a teacher and has for the last few years done presentations and training seminars for a local university.  She is not employed by them, however, receives compensation.  In the past we have received 1099-MISC, this year its 1099-NEC.  When I enter it into the turbotax software it treats this as if she has her own business and then starts asking about the business name and address.  It also states that a schedule C form needs to be filled out.  I'm little confused as she doesn't have a business.  On top of that turbotax also advises that I cannot efile do to some of my forms.  From other posts on this site I believe it has to do with the 1099-NEC form.  Am I doing something wrong? 

    Best answer by xmasbaby0

    She might not feel like she is running a business---but as far as the IRS is concerned she is a self-employed, independent contractor---running her own business.   1099NEC ('"non-employee compensation") is the document issued to those who are independent contractors--working for clients-- and who are not having Social Security, Medicare or taxes withheld from their pay.

     

    She will need to pay self-employment tax for Social Security and Medicare, as well as ordinary income tax.  She will need to prepare a Schedule C for any business expenses she has had, such as supplies for handouts for her students, computer (?), office supplies she had to purchase, etc. etc.  Does she have a home office dedicated to preparing for her work as a presenter for the school?   

     

    https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

     

     

    https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

     

    https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

     

    https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

     

    https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

    https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

     

     

    https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

     

     

    https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

     

     

    You will need to use online Premium or any version of the CD/download in order to prepare a Schedule C.

     

    The issues with e-filing with a Schedule C will be resolved within the next several days.

    2 replies

    xmasbaby0Answer
    Employee
    January 27, 2024

    She might not feel like she is running a business---but as far as the IRS is concerned she is a self-employed, independent contractor---running her own business.   1099NEC ('"non-employee compensation") is the document issued to those who are independent contractors--working for clients-- and who are not having Social Security, Medicare or taxes withheld from their pay.

     

    She will need to pay self-employment tax for Social Security and Medicare, as well as ordinary income tax.  She will need to prepare a Schedule C for any business expenses she has had, such as supplies for handouts for her students, computer (?), office supplies she had to purchase, etc. etc.  Does she have a home office dedicated to preparing for her work as a presenter for the school?   

     

    https://ttlc.intuit.com/questions/2926899-how-does-my-side-job-affect-my-taxes

     

     

    https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099-nec/1099-nec/L5qTsBiSe_US_en_US

     

    https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

     

    https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

     

    https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

    https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

     

     

    https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

     

     

    https://blog.turbotax.intuit.com/self-employed/self-employed-tax-deductions-

     

     

    You will need to use online Premium or any version of the CD/download in order to prepare a Schedule C.

     

    The issues with e-filing with a Schedule C will be resolved within the next several days.

    **Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
    January 29, 2024

    No, you are not doing anything wrong.  Form 1099-NEC has been around since 2020.  Prior to that, income that is now reported on Form 1099-NEC was reported on Form 1099-MISC.  The university that your wife has been doing work for should have been issuing her a 1099-NEC the past several years, and your wife should have been filing Schedule C as an independent contractor.  

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"