Report 1099-MISC or 1099-NEC Income

How to enter any of the 1099 Forms on for non-employee compensation? How to enter your 1099 income if you are self-employed?

Article, Solution:

If you received a 1099-MISC or a 1099-NEC with an amount in Box 7 (non-employee compensation), how you should enter this depends on whether or not this is self-employment income. You don't necessarily have to own a business for the IRS to consider it as self-employment work. If you are unsure as to whether your income is from self-employment or whether you are self-employed, you can review the information here:

Self-employed, business owner, or independent contractor.

Or, contact us for help after you have created your eFile account.

To file your return including income from your 1099 Form, we recommend you simply start the tax interview so you can be walked through all of the income section. As you work, you will be brought to the Income section where you can add your 1099-MISC and/or 1099-NEC under the Business section.

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If you do freelance work (delivering food, for example) or you own your own business, your income should be entered in the business section. As you work, eFile will generate Schedule C and Schedule SE so your pay the right amount of taxes. This allows you to enter business deductions, like vehicle mileage, and include them on your return.

It is very important that you select that this form is for a business. eFile can only generate the proper forms when you select this and add your business information.

If you want to manually add forms, you can add a 1099-MISC or 1099-NEC by clicking on Federal Taxes/Review on the left menu. Here, select I'd like to see all federal forms and enter “1099” and both the 1099-MISC and 1099-NEC will be shown in the results among other 1099 forms. Add the respective form for your income by clicking the "+ Add form" button and work through the questions. If you are self-employed, click on I'd like to tell you about my business and proceed through the tax questions and provide your information.

See how to add any form to your eFile account.

As a self-employed person, you should have a Schedule SE in your return to pay self-employment taxes and a Schedule C for your profit/loss from business. You can verify that your return has these forms going to My Account and clicking on the PDF link next to 2022 Tax Year | In progress to view your draft return.