If you were not an employee of the company or person who paid you, your payment (compensation) is reported on Form 1099-NEC instead of Form W-2. To enter the applicable Schedule C information, and Form 1099-NEC, follow the steps below.
Refer to IRS Publication 334 for additional information regarding self-employment tax, what it is, who pays it, how it's calculated and reported, etc.
NOTE: If you determine that this income should not be considered self-employment income (but instead employee income that should have been reported on Form W-2), you would need to report the income on Form 1040, Line 1 and file Form 8919. This allows you to report the uncollected social security and Medicare taxes on your wages. See Form 1040 - Other Income for more information.
Online
Dashboards
From within your TaxAct return, click Income.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Expand the Business & Self Employed section and click Add beside Self-Employment/Gig Work (Schedule C).
If you need to enter Form 1099-NEC for an existing Schedule C, click Edit or Continue for the Self-Employment/Gig Work (Schedule C) listed under My Income instead.
On the screen titled Please select all that applied to you during 20YY, click the Gig Worker/Freelancer box, then click Continue.
If prompted, select who the business belongs to and click Continue.
Enter or select the type of work that you did and click Continue.
On the Please select all income sources you received for ___ screen, click 1099-NEC and click Continue.
Select 1099-K and Other Income Sources, if applicable.
Enter the information from the Form 1099-NEC that you received and click Continue.
Complete the rest of the interview process.
Classic Navigation
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Business Income drop-down, then click Business income or loss from a Sole Proprietorship.
Click +Add Schedule C and continue with the interview process to enter your information.
If you need to enter Form 1099-NEC for an existing Schedule C, click Edit instead.
On the screen titled Please select all that applied to you during 20YY, click the Gig Worker/Freelancer box, then click Continue.
Enter or select the type of work that you did and click Continue.
On the Please select all income sources you received for ___ screen, click 1099-NEC and click Continue.
Select 1099-K and Other Income Sources, if applicable.
Enter the information from the Form 1099-NEC that you received and click Continue.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Business Income drop-down, then click Business income or loss from a Sole Proprietorship.
Click +Add Schedule C and continue with the interview process to enter your information.
If you need to enter Form 1099-NEC for an existing Schedule C, click Review instead.
Enter your business information and click Continue.
On the screen Please select which income sources ____ received for ___ in 20YY, check the 1099-NEC box and click Continue.
Select any other income sources, as applicable.
Enter the information from the Form 1099-NEC that you received and click Continue.
Complete the rest of the interview process.
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