Level 3

Question

1099-nec

Forum|Forum|5 years ago
March 9, 2021
4 replies
37 views

Tell me if this is correct. I have a 1099-nec for a client that worked for Uber. I went to 1099-misc scrolled to box 3 "other income" put the $1400 then i scrolled down to "for other income" and checked the "other income" box then if you go to the "misc income form" it will show it under other income and on the 1040 on line 8 it shows it on "other income" is this correct?

ProSeries Basic

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dkh

Level 15

Wouldn't this client be considered self-employed and required to file a Schedule C?

dd4vols

Intuit Community Champion

NEC is short for Non-Employee Compensation. NEC amounts are subject to self-employment taxes, not just income tax. You should link these amounts to a Schedule C, and prepare it accordingly.

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BobKamman

Level 15

In which state does your client live? I think California gig/taxi drivers may be treated differently from the rest of the country, because of state laws regarding worker classification enacted last year (and to some extent, rejected by voters).

qbteachmt

Level 15

"I have a 1099-nec for a client that worked for Uber. I went to 1099-misc scrolled to box 3"

But it's not a 1099-Misc. That is the info that used to be in box 7 on 1099-Misc. Now it's on the 1099-NEC. You went to the wrong form.

They might also get a 1099-K.

https://www.uber.com/us/en/drive/tax-information/tax-documents/

https://help.uber.com/driving-and-delivering/article/what-is-a-1099-nec?nodeId=c7ed2266-4cc3-442e-836f-ee1e12bd9371

https://www.uber.com/us/en/drive/tax-information/faq-and-resources/

https://www.irs.gov/taxtopics/tc510

There is some light reading that should be helpful.

Your client is supposed to track and report some business expense value from the use and operation of the vehicle, and what it takes to make that income. That's their business, as Schedule C.

Don't yell at us; we're volunteers

T

thegoodbrotherbrokers

Level 4

What about bonus that was given to employee and reported on 1099-Nec. Can you use box 3. I notice there is better benefit regarding tax treatment that using schedule C and creating something that does not belong to the employee as self contractor

dd4vols

Intuit Community Champion

Bonuses to EMPLOYEES should be in payroll.. and subject to payroll withholdings. If you could compensate employees via 1099s, no one would have payroll...to avoid the employer match on taxes deducted, Your problem starts at the employer level.....that's totally wrong.

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