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February 20, 2021
Question

1099-NEC why is the amount entered twice once under Self-employment income and expenses, and again under Income from form 1099-NEC?

  • February 20, 2021
  • 1 reply
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I am not self employed this 1099-NEC is for residual income from recruits I brought into the multi-level-marketing and I do not actively work for them.

1 reply

KathrynG3
February 20, 2021

If you are selling products or services as part of a multi-level-marketing program, you are considered self-employed in the eyes of the IRS.

 

Your Forms 1099-NEC received should be reported as self-employment income, which requires a Schedule C, since you received residual income from the recruits even though you did not actively work for them. It is still earned income because you brought the recruits.

 

The Forms 1099-NEC must be included on Schedule C, but should only be entered once. You should see your Forms 1099-NEC under Common Income.

 

For the ones entered as other income, click the trash can icon next to them to delete these duplicates. 

 

For more information, see: 

What is Form 1099-NEC?

What Is a Schedule C IRS form?