I do not have a business. How do I enter my Form 1099-NEC without entering a business?
Enter a business: Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
NEC stands for Non-Employee Compensation. If you are not an employee, the IRS usually considers you self-employed. You do not need to own a business, just a description of what you did to earn that income. This includes things like consulting and contractor income.
Non-employee compensation is treated as business income that needs to be reported on a Schedule C.
Once you begin entering your Schedule C, on the Basic Business Information screen, enter a short description of the type of work. If you did consulting work, type in something like "business consultant" or "consulting service" for the description. Select the business code that best describes the type of work you did or you can choose unclassified. Select "Cash" as the type of accounting method used. All of the other questions can usually be left blank.
On the next screen, select the checkbox for the Form 1099-NEC income that relates to the Schedule C. The next screens will ask for business expenses, but if you don't have any, you can keep going through those screens without entering anything. Your 1099-NEC income will then correctly show up on Schedule C and be subject to self-employment taxes.
What if my income is not self-employment income?
NEC stands for Non-Employee Compensation. If you are not an employee, the IRS usually considers you self-employed. You do not need to own a business, just a description of what you did to earn that income. This includes things like consulting and contractor income.
Non-employee compensation is treated as business income that needs to be reported on a Schedule C.
Once you begin entering your Schedule C, on the Basic Business Information screen, enter a short description of the type of work. If you did consulting work, type in something like "business consultant" or "consulting service" for the description. Select the business code that best describes the type of work you did or you can choose unclassified. Select "Cash" as the type of accounting method used. All of the other questions can usually be left blank.
On the next screen, select the checkbox for the Form 1099-NEC income that relates to the Schedule C. The next screens will ask for business expenses, but if you don't have any, you can keep going through those screens without entering anything. Your 1099-NEC income will then correctly show up on Schedule C and be subject to self-employment taxes.
What if my income is not self-employment income?
