What if my income is not self-employment income?
If you received a Form 1099-NEC with wages that should've been reported on a W-2, enter your 1099-NEC as instructed. We'll ask you questions to determine the amount of the Medicare and Social Security taxes that should've been collected as an employee. Where do I enter Uncollected Social Security and Medicare Tax on Wages (Form 8919)?
If you have a 1099-NEC that is not self-employment income subject to self-employment taxes, you need to enter the income in Box 3 of a 1099-MISC instead of Box 1 of the 1099-NEC. If your income is not self-employment income, you do not need to use Schedule C to report business income. Instead, the 1099-MISC income will go onto Line 8z of Schedule 1 as Other Income that is only subject to regular tax and not subject to self-employment taxes.
However, you should have the payer issue a 1099-MISC to you and have the amount put in Box 3 of the 1099-MISC as Other Income instead of Box 1 of the 1099-NEC as Nonemployee Compensation. Otherwise, the IRS will expect you to report the Box 1 nonemployee compensation on Schedule C, Schedule F, or Form 4835 and pay self-employment taxes on it.
If you have a 1099-NEC that is not self-employment income subject to self-employment taxes, you need to enter the income in Box 3 of a 1099-MISC instead of Box 1 of the 1099-NEC. If your income is not self-employment income, you do not need to use Schedule C to report business income. Instead, the 1099-MISC income will go onto Line 8z of Schedule 1 as Other Income that is only subject to regular tax and not subject to self-employment taxes.
However, you should have the payer issue a 1099-MISC to you and have the amount put in Box 3 of the 1099-MISC as Other Income instead of Box 1 of the 1099-NEC as Nonemployee Compensation. Otherwise, the IRS will expect you to report the Box 1 nonemployee compensation on Schedule C, Schedule F, or Form 4835 and pay self-employment taxes on it.
