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2 replies

DMarkM1
April 21, 2021

You are considered self-employed. You will enter your income and expenses in the "Wages & Income" tab.

  1. Scroll down to "Self-employment"
  2. "Show More"
  3. "Start/Revisit" "Self-employment income and expenses"
  4. Enter the field of your work and then all the description information
  5. Next you will have the opportunity to enter income
  6. You will select the "Other...Cash" option for the type of income
  7. Once your income is entered you will be able to enter any expenses you incurred to generate that income

 

 

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Hal_Al
Employee
April 21, 2021

@DMarkM1  I have TT download Deluxe.  I don't see the screen you describe.

Instead I have:

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

- Business Items

   - Business Income & Expenses (Sch C)

 

Will this be different in (some versions) of online TT?

Hal_Al
Employee
April 21, 2021

 The IRS considers undocumented cash income (no W-2 or 1099-NEC), for work performed, to be self employment income. Enter at "Business Income & Expenses" and 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 tax) on any profits greater than $432.

You may have to upgrade to the Self Employment version of TT. If you have no expenses to deduct, There's a chance you may be able to use TT Deluxe . Enter your income at the 1099-NEC screen (even if you didn't get a 1099-NEC). You do not need the payer's ("employer's") Employer ID Number (EIN).

In TurboTax (TT), enter at:
- Federal Taxes tab

 - Wages & Income

Scroll down to:

   - 1099-MISC and Other Common Income

      -Income from Form 1099-NEC

When asked why you got the 1099-NEC, select “Freelancer or Independent contractor”