1099-NEC Income

Forum|Forum|11 months ago
April 23, 2025
1 reply
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In addition to my regular W-2 income, I do some consulting work, for which I received a 1099-NEC. I did my taxes using turbotax and I noticed that the income from the 1099-NEC was added to schedule C and the income was added as if I'm the sole proprietor of this business. This is not my business. I also purchased a house and needed to provide my tax return for my application, and now they are asking me for profit and loss statements, as well as a business tax return for "my business". Do I need to file an amended tax return to correct the fact that the income from the consulting work is contractor income and not a sole proprietorship? Is this something that turbotax can help with?

Ask the Experts - Amend - April 2025

SharonD007

Your income from Form 1099-NEC is correctly reported on Schedule C. The IRS considers this contract income as self-employment income. The good thing is that you'll be able to deduct reasonable and customary business expenses from that income.

You can amend your taxes if you want to add expenses that you incurred while working as a contractor. Refer to the TurboTax article What is a 1099-NEC?What is the self-employment tax? for more information.

For additional information, refer to the TurboTax Help articles How to File Taxes with IRS Form 1099-NEC, Reporting Self-Employment Business Income and Deductions, and What self-employed expenses can I deduct?

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amla809Author

Will the actual owner of the business encounter issues with their business being listed as mine on my tax return?

VolvoGirl

Employee

No. The 1099NEC is from his business to your business. Yes you are the owner of your own self employment business. You are in business for yourself. Use your own info. The people or company that pays you is your customer or client. You need to fill out schedule C for self employment business income. You are considered to have your own business for it. YOU are the business.

Actually I would just enter your total income as Other self employment income or as Cash or General income. You don't need to get a 1099NEC or 1099Misc or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C.

How to enter income from Self Employment

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