Subcontractor Income
Menu Path: Income > Business / Rental Income > Business Income (Schedule C)
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Menu Path: Income > Business / Rental Income > 1099-NEC / 1099-MISC
The IRS considers consulting or contractor income as business income that needs to be entered on a Schedule C. Enter your subcontractor income in the Business Income (Schedule C) section.
If you received a Form 1099-NEC, enter it on the Your 1099-NEC or 1099-MISC Income screen, and attach it to Schedule C.
To add a business record, go to the Your Business Income (Schedule C) screen. Enter a short description of the type of work you did for the business description. For example, if you did consulting work, enter something like "business consultant" or "consulting service".
On the Basic Business Information screen, enter additional business information including the business code. Choose the business code that best describes the type of work you are doing. Choose Cash as the type of accounting method used. All of the other questions can usually be left as No.
On the Link 1099-NEC or 1099-MISC screen, choose 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 do not have any, you can just keep going through those screens without entering anything. Your 1099-NEC income will then correctly show up on Schedule C and be subject to the self-employment taxes.
- or -
Menu Path: Income > Business / Rental Income > 1099-NEC / 1099-MISC
The IRS considers consulting or contractor income as business income that needs to be entered on a Schedule C. Enter your subcontractor income in the Business Income (Schedule C) section.
If you received a Form 1099-NEC, enter it on the Your 1099-NEC or 1099-MISC Income screen, and attach it to Schedule C.
To add a business record, go to the Your Business Income (Schedule C) screen. Enter a short description of the type of work you did for the business description. For example, if you did consulting work, enter something like "business consultant" or "consulting service".
On the Basic Business Information screen, enter additional business information including the business code. Choose the business code that best describes the type of work you are doing. Choose Cash as the type of accounting method used. All of the other questions can usually be left as No.
On the Link 1099-NEC or 1099-MISC screen, choose 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 do not have any, you can just keep going through those screens without entering anything. Your 1099-NEC income will then correctly show up on Schedule C and be subject to the self-employment taxes.
