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November 18, 2020
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Why does 2020 Turbo Tax show 1099-MISC Box 7 as N/A ?

  • November 18, 2020
  • 3 replies
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I just installed Turbo Tax 2020.

I'm trying to begin adding information and find that when I add a draft 1099-MISC that will

be coming (eventually) for sole proprietor income, that Box 7 is listed as N/A.

Why is it not "Nonemployee compensation" as I would expect ?

Best answer by Anonymous_

Form 1099-MISC has changed for the tax year 2020.

 

See https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

 

For nonemployee compensation, you will receive a Form 1099-NEC.

 

See https://www.irs.gov/pub/irs-pdf/f1099nec.pdf

3 replies

Employee
November 18, 2020

Form 1099-MISC has changed for the tax year 2020.

 

See https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

 

For nonemployee compensation, you will receive a Form 1099-NEC.

 

See https://www.irs.gov/pub/irs-pdf/f1099nec.pdf

ChenaAuthor
November 18, 2020

Thanks for that information -- the change to a 1099-NEC is new to me.

And it is apparently still new to Turbo Tax as a search for 1099-NEC in "Search Topics" does not

yield results.

 

I'll represent this as "other income" for now and will just have to delete that and re-enter it as

1099-NEC when Turbo Tax supports that new form.

I am trying to get an early assessment of 2020 taxes to double-check my own spreadsheet based

predictions as I consider end-of-year moves (Roth conversion, additional charitable donations, tax loss

harvesting).

I appreciate everyone's help.

Critter-3
November 18, 2020

Again you NEVER have to enter the 1099 income in the 1099 section of the Sch C income entry screen ... the only reason there are 3 places to enter Sch C income  in the program is because if there wasn't the uneducated users would be confused.  So again you don't have to enter in the 1099 income at all since none of it goes to the IRS at all ever (the IRS gets a copy of the 1099 from the issuer just like you do )  ... all the IRS ever sees is the total on the Sch C.   If you want to use that section go ahead ... it is your time to waste.  

November 18, 2020

just as a warning the 2020 software will probably not be fully functional until some time in January maybe even early February. 

Critter-3
November 18, 2020

FYI .... entering in 1099 income for a Sch C is not required by the IRS ... all they get is a total on the Sch C.  All that data entry is for your benefit only and it not required.  If you wish just skip those screens and enter the total in the additional income section.  

 

general income ADDITIONAL income in SE version.PNG

January 8, 2021

i have the same issue too, 2020 i cannot find box 7 , neither NEC (nonemployee comp) i like to create 1099 misc (this year is 1099 NEC) but i cannot find on turbo tax soft ware, which i been using more than 10 yrs with turbo tax. this year turbo tax confuse me a lot. i try to call [phone number removed] they put me on hole 1 hr but noone come to me. i have small buss. i been using this soft ware but this year i am very disappointed.

Nichole [removed] 

Employee
January 8, 2021

@Gizmo10tuoi 

 

If you are using TurboTax Home & Business, you need to update your software.

 

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