1099-NEC links to Schedule C and doubles income

Davenport514
Davenport514 Member Posts: 1 Newcomer
in Income

When I link 1099-NEC to Schedule C, it doubles my income and increases my taxes owed -how can I fix?

Answers

  • KeriC
    KeriC FreeTaxUSA Agent Posts: 218
    edited April 18

    @Davenport514

    It sounds like there are several different things going on here.

     1) When you enter the 1099-NEC and then link it to your Schedule C, the Income Summary page will make it look like it's being included twice; once as a 1099-NEC and once on the Schedule C. However, the amount in the 1099-NEC line is not taxed. It is only taxed once attached to a specific schedule (Schedule C, Schedule E, Schedule F, Other Income, etc). I can understand the confusion when seeing it twice on the Income Summary, but please be assured that it is only being included in your income once.

    2) Is it possible that you have entered your Schedule C income by linking both the 1099-NEC and also entering it as gross income not reported on a 1099. You may want to check the "Income and Returns" section for your Schedule C entry to make sure this isn't the case.

    3) Net income on your Schedule C (gross income - expenses) is subject to self-employment tax. The self-employment tax rate is 15.3%, which is likely why you saw a jump in your total tax after your 1099-NEC was linked and being reported as Schedule C income.

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