Form 1099-NEC, Nonemployee Compensation
- Taxpayers should receive a 1099-NEC form, if they earned more than $600 as compensation for services they performed for an individual who is NOT their employer.
- Taxpayers who receive this form are considered independent contractors.
- Form 1099-NEC must be linked to SCH C (Profit or loss from a business) or SCH F (Profit or loss from a farm).
- Failure to link 1099-NEC to the proper form will result in failure to pay the proper amount of taxes.
Follow the instructions below to correctly enter the Form 1099-NEC:
1. Select Add Form.
2. Begin by typing 1099-NEC, into the search bar at the bottom of the All Forms and Schedules Menu.
3. Select Form 1099-NEC. Double-click to add the form.
4. If a joint return, choose New Taxpayer's or New Spouse's Occurrence.
5. Complete the 1099-NEC, filling in all applicable sections.
Linking Form 1099-NEC To SCH C
1099-NEC must be linked to the appropriate form either SCH C (Profit or loss from a business) or SCH F (profit or loss from farming). 1099-NEC's received for services or work a taxpayer performed should be linked to SCH C.
1. Select the Link to (1040, SCH C, or F) box in box 1 of Form 1099-NEC.
2. Select Choices from the Active Options Window.
3. Select the SCH you wish to link to. If no SCH C is on the return select Unnamed Activity. If there is already a SCH C added, then you can select the SCH C you have already added and named. Double-click to link.
4. You can view the linked income on SCH C Line 1.
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