Form 1099-NEC is used to report nonemployee compensation.
The amount in Box 1 is generally treated as self-employment income and reported on Schedule C or Schedule F. It is also possible, however, for a taxpayer who's not self-employed to receive a 1099-NEC, i.e., the activity that gave rise to the payment is sporadic and/or more akin to a hobby, unrelated to a section 162 trade or business. In such a case the payment should not be entered in the 1099-NEC menu in their tax return but simply be reported as Other Income.
Reporting 1099-NEC as self-employment income
To enter Form 1099-NEC in TaxSlayer ProWeb, from the Federal Section of the return select:
- 1099-NEC - Enter the information on the form, then click Continue.
After entering the 1099-NEC information, you will be prompted to report the income on Schedule C or Schedule F:
Select the appropriate schedule and click Continue. If the schedule is already included in the return, you will be prompted to link the 1099-NEC to that schedule or create a new one.
Note: This is an article on entering a 1099-NEC in TaxSlayer ProWeb. It is not intended as tax advice.