Questions & Answers

Nonemployee Compensation (Form 1099-NEC)

Menu Path: Income > Business Income > Form 1099-NEC / 1099-MISC

Nonemployee compensation is usually reported on a Form 1099-NEC. Enter this on the Add / Edit / Delete 1099-NEC or 1099-MISC Income screen.

The 1099-NEC is not e-filed to the IRS like a W-2 is. If you know where the 1099-NEC income should be reported and you don't have any federal or state tax withheld shown on the 1099-NEC, you could choose to skip entering the 1099-NEC and just enter the income directly on the income record. For example, enter income for a Schedule C record here: Menu Path: Income > Business Income > Business Income (Schedule C).

Other possible income records may include: Royalty record, Rental record, Farm Income record, Farm Rental record, or as Other Income on the Other Sources of Income screen: Menu Path: Income > Uncommon Income > Other Income. If you do enter the income directly on one of those records, make sure you don't have it entered as a 1099-NEC. Otherwise, the income will be doubled on your Schedule C, etc.

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