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1099-NEC

Forum|Forum|5 years ago
February 12, 2021
9 replies
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I have a client that received a 1099-NEC for $300. That is below the required $600 required limit. It is also below the $400 reporting limit. They have no other income that would og with this form. Do I need to enter it just because they received a 1099-NEC?

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Best answer by Just-Lisa-Now-

I thought you did not need to report self-employment income until it hit $400. Has that changed?

all income needs to be reported, no SE taxes kick in until youre over the $400 mark, so for only $300 if you enter it as Sch C or as Other Income the tax will be the same.

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So they have no other income at all? If their only income is $300, they dont have a filing requirement.

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HavinfunoneAuthor

Level 3

No, they have other taxable income and even have another Schedule C but the other NEC income is the spouses and is in a totally different industry.

Level 15

"They have no other income that would og with this form"

And no expenses, and no need to file for the EIP refundable credits? Because "refundable credit" = Money Back, if they qualify.

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HavinfunoneAuthor

Level 3

Adding the $300 NEC actually lowers their refund by $201

Level 15

All income is reportable, whether a 1099 is received for it or not.

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