Where do I input data for Schedule 1, Box 1,on Form 1040 electronicly - Income for 1099-NEC from ELC
Hello all,
First, thank you for your help in advance. My wife received multiple stipends from The Early Learning Coalition for attending and passing classes related to her job as a Teacher. She is NOT self-employed and received a 1099-NEC. The instructions that apply to her on this NEC states as follows:
"If you are not an employee of Early Learning Coalition but the amount in box 1 is not self- employment (SE) income (for example, it is income from a sporadic activity or a hobby), report the amount shown in box 1 on the 'Other Income' line (on Schedule 1 (Form 1040))."
I cannot find where to input this for the life of me and almost makes me want to pay the $200 to have this done at HR or JH so I do not mess this up.
How do I get to that box specifically on the electronic filing? Thanks again!
Answers
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Hi AaronW,
Nonemployee compensation (reported in Box 1 on a 1099-NEC) is typically considered self-employment income and the IRS usually looks for that to be reported on Schedule C. If it is not self-employment income, you may want to contact the issuer and ask them to issue a corrected form, with your income instead being reported as Other Income on a 1099-MISC.
If the company will not issue a corrected form, you could choose to not enter the 1099-NEC itself, but instead enter that income directly in the Other Income section of your account. The menu path for that would be Income > Uncommon Income > Other Income. There is a section for "Hobby Income" on that screen, as well as "Miscellaneous Income."
For more information, please see this related Community article.0 -
An article from Freetaxusa (posted below), and 1099-NEC instructions themselves dispute what you are saying. 1099-NEC instructions from the IRS themselves literally say it can be self-employment income or a hobby "If you are not an employee but the amount in box 1 is not self-employment (SE) income (for example, it is income from a sporadic activity or a hobby), report the amount shown in box 1 on the “Other income” line(on Schedule 1 (Form 1040))."
Source: Form 1099-NEC (Rev. April 2025)
The FreeTaxUSA article i paste below, if you scroll down, tells people filing as a hobby to "If your review work is considered a hobby instead of an activity in which you are engaged to generate income, the 1099-NEC income gets reported on Schedule 1 of Form 1040 with no deductible expenses. That’s entered in the software by following the menu path: Income > Uncommon Income > Other Income."
I'm not sure if that path still works, and the article is about reviewing but it applies to anyone filing 1099-NEC as a hobby. And the IRS has guidance on how to discern if you should consider it as business or hobby income: https://www.irs.gov/newsroom/heres-how-to-tell-the-difference-between-a-hobby-and-a-business-for-tax-purposes."
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Hi Redbee,
Thank you for your comment. You are correct that the income reported on a 1099-NEC form, may be Hobby income and may be reported as such. Thank you for your research and post.
I think what RachelS is saying, is that the 1099-NEC, when entered as a form in the software, will need to be reported as Schedule C income. However, the income may be entered as Hobby income on the Other Income page without entering the 1099-NEC.
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thank you - i think you majorly edited your original response to OP to make it more correct, which makes my original response looks like it does not make sense, but fine.
however you still wrote "the IRS usually looks for that to be reported on Schedule C. If it is not self-employment income, you may want to contact the issuer and ask them to issue a corrected form, with your income instead being reported as Other Income on a 1099-MISC."
again, the irs instructions for 1099-NEC literally include (and you can google it, links i paste here come out wonky) "If you are not an employee but the amount in box 1 is not selfemployment (SE) income (for example, it is income from a sporadic activity or a hobby), report the amount shown in box 1 on the “Other income” line(on Schedule 1 (Form 1040))." this is straight from the IRS.
the irs and amazon DECIDED to do an NEC form - it would make zero sense to ask them to issue a 'corrected form' when this is the form they decided on together, and irs guidance itself says the form can be reported as a hobby or self employment.
irs has also guidance on if something can be considered hobby or self employmnt (since i am leery of posting links bc of formatting, just google irs business or hobby), and for a lot of us, 1099 NeCs fall squarely ito HOBBY (no profit motive, pleasurable, dont record as a business, sporadic etc)…so this is not a mistake on the form.
freetaxusa employees need to read the 1099 ned instructions and be taught that 1099 NEC is up to user to decide if it falls under SE or hobby an to report it as such (schedule C if SE, sechedule 1 if hobby).
just for anyone reading this, the freetaxusa agent i chatted with while doing taxes had said it should be reported as self employment income (terrible advice, bc this fits the IRS criteria of hobby) even though i quoted her the irs documentation itself and the freetaxusa article saying how to enter it in as a hobby. she said i should use different software if i wanted to enter it in as a hobby and i couldn't believe she was baltantly disregarding both IRS guidance AND freetaxusa's own article. the IRS itself says it can be reported as a hobby on the form instructions, and the freetaxusa article i linked to before says how to report it as a hobby.
so i just followed the article instructions on the freetaxusa article i had linked before (and i think the links came out wonky with formatting).
when i reported it as a hobby following the menu path: Income > Uncommon Income > Other Income > hobby income, it did indeed end up, as the article said, going on SCHEDULE 1 (line 8J) on my taxes - just as the IRS wants it to if you are reporting it as hobby, and just as the freetaxusa article said it would.
but it is true i wasnt able to enter it as a regular NEC form,l because your software doesnt support entering in an NEC form as a hobby despite IRS NEC instructions literally saying you can. so the software should be updated. i just wrote the dollar # on the NEC and it appeared on schedule 1.
i realize being a vine reviewer is somewhat niche but more and more people are being invited to review programs in general, the IRS decided it should be NEC, and a lot of us are receiving blatantly bad advice.
hopefully this helps someone reading.
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