Question

Glitch in the program won't let me report 1099-NEC income, and assumes I'm the employer. I can't finish this return because of it. Should I just not report anything?

Forum|Forum|5 years ago
May 25, 2021
1 reply
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My employer hired me as an independent contractor. I made a total of $945.50 but TurboTax keeps assuming I'm the employer. Should I report this income since no taxes were taken out? Will I get in trouble?

TurboTax Deluxe Online

fanfare

Employee

There is no glitch.

You must use Schedule C.

Enter your own name in the business name box.

Hal_Al

Employee

TurboTax is not telling you that you are an employer. It's telling you that your work is a business of it's own.= and that's how it's reported on your tax return. Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-NEC); The IRS considers anything on a form 1099-NEC to be self employment income. You must report the income. Leaving it off is not an option. Enter the 1099 income, at Other Common income / income from a 1099-NEC . 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.