Question

Turbo Tax Self Employment Calculation Error

Forum|Forum|5 years ago
March 30, 2021
2 replies
0 views

For 2020 we received a 1099-NEC (new form for this year), in prior years we had received a 1099-MISC for this income. With the update to 1099-NEC for 2020 Turbo Tax is no longer calculating Self Employment tax as part of this income and understating my Total Tax for 2020. How can I get this fixed?

B

Bsch4477

Employee

Be sure that the income from 1099-NEC is flowing to your Sch C.

O

otoole78Author

The income is making it to part I of schedule 1 but not making it to schedule C. What would be the reason for that? Thanks for your help.

B

Bsch4477

Employee

When you report your 1099-NEC income you follow the prompts to report income and expenses on Sch C.

J

JMoney99

This is an error in TT. After entering the 1099-NEC, TT asks if you would like to deduct expenses. If you select No, the income does not go to Schedule C and therefore does not go to Schedule SE. The result is under reporting the amount of SE Tax.

The workaround is to answer Yes, I have expenses to deduct. This will create a Sched C. You do not have to enter any expenses. The profit from Sched C will flow to Sched SE and will calculate SE Tax.

Turbo Tax needs to fix the error.