I recieved a 1099-NEC for $750 working a few hours for a local business. I do NOT own a small business and am NOT self-employed. How do I best enter this income in TT?

Forum|Forum|2 years ago
March 18, 2024
1 reply
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How do I answer TT questions like: "What is the name of your business?" and "Is this qualified business income?" Is this necessary just to enter $750 earned doing a few hours work on the side??

TurboTax Online

SharonD007

You will have to report your income from Form 1099-NEC on Schedule C. The IRS considers this income as self-employment income, which is why TurboTax is asking you questions about your business. You don't have to name the business, you can use your name. The good thing is that you'll be able to deduct reasonable and customary business expenses from that income.

To report self-employment income, follow the steps below:

Open TurboTax.
Enter self-employed income in the search bar
Select the Jump to link at the top of the search results.
Answer Yes on the Did you have any self-employment income or expenses? screen.
Answer the questions on the following screens until you arrive at Let's enter the income for your work.
Select 1099-NEC and select Continue.
You can enter the info from your 1099 form on the following screens.

For additional information, refer to the TurboTax Help articles How to File Taxes with IRS Form 1099-NEC, Reporting Self-Employment Business Income and Deductions, and What self-employed expenses can I deduct?

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edgelser2Author

Thank you for the prompt response! And your words and links were helpful.

I still have one main question: How do I determine if my work is "Qualified Business Income" or Income not treated as wages by the IRS? (I did just basically work on a computer doing Video Editing.)

DMarkM1

Your work is qualified business income (QBI) and the payments are not considered wages since they were not reported on a W2. You are eligible for the 20% QBI deduction from your business income.

Here is an extract from the Congressional Research discussion on the Qualified Business Income Deduction.

"The IRC Section 199A deduction applies to most business activities. An activity [ is a qualified business] if it is conducted with “continuity, regularity, and the intent of earning a profit. Such an activity can be performed on a full-time or part-time basis."

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