Guide to Form 1099-NEC

NEC stands for Nonemployee Compensation. If you drove for Uber, did freelance design, or consulted, this is the form you'll receive if you earned over $600.

Where does it go?

You cannot simply put 1099-NEC income directly on the front of your 1040. You are considered a business.

1. Report the income on Schedule C (Profit or Loss from Business).
2. Deduct your business expenses on Schedule C.
3. Take the net profit from Schedule C and report it on Schedule 1, Line 3.
4. That total flows to Line 8 of your 1040.

The Self-Employment Tax

When you get a W-2, your employer pays half of your Medicare and Social Security taxes. With a 1099-NEC, you are the employer and the employee, so you pay both halves. This is calculated on Schedule SE. You can estimate this using our Self-Employment Tax Calculator.