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:
Select Add Form.
Select Form 1099-NEC. Double-click to add the form.
If a joint return, choose New Taxpayer's or New Spouse's Occurrence.
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.
Select the Link to (1040, SCH C, or F) box in box 1 of Form 1099-NEC.
Select Choices from the Active Options Window.
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.
You can view the linked income on SCH C Line 1.
