Can't find 1099-NEC filing option in TaxAct software - am I missing something?

Okay, so I need to look under Self-Employment specifically? That actually makes sense now that you mention it. I was searching for "1099" in the search bar and only seeing the MISC option come up. I'll give this a try right now. One thing that confused me - do I need to set up a "business" if I just did some freelance work? I don't have an actual registered business or anything, just did some contract work on the side of my regular job.

Yes, look under Self-Employment - that's where you'll find it! The search function can sometimes be limited in tax software. For tax purposes, your freelance work is considered a "business" even if you don't have a formal business entity. You don't need to have registered anything or have a business name. When it asks for a business name, you can simply use your own name if you didn't operate under a specific business name. The IRS treats independent contractor work as self-employment regardless of whether you consider yourself to have a "business" in the traditional sense.

Can this taxr.ai thing actually help with figuring out deductions too? I also have a 1099-NEC but I'm never sure what business expenses I can write off vs what might trigger an audit.

How does the upload process work? I'm always hesitant about uploading my tax docs to random websites - is it secure? And does it just help with finding where to enter info or does it actually give tax advice?

Yes, it definitely helps with deductions! When I uploaded my 1099-NEC, it analyzed my situation and suggested industry-specific deductions I hadn't even thought about. It showed me categories like home office, business mileage, and professional subscriptions that applied to my specific type of contractor work. The upload process is really straightforward and secure - they use bank-level encryption. You just take a photo or upload a PDF of your tax document, and it analyzes it instantly. It's not just about finding where to enter info - it actually examines your specific situation and gives personalized advice about deductions, credits, and potential audit triggers based on your specific income type and amount.

Wait, so this service just calls companies for you and waits on hold? How much does that cost? Seems like something I could just do myself if I put my phone on speaker and do other stuff while waiting.

This sounds fake tbh. No way they can get through faster than regular customers. Companies use call queues and everyone waits their turn. How could they possibly bypass that? Sounds like a scam to get your phone number or money.

The service costs less than what my time is worth - I won't mention the exact amount, but considering I was able to keep working instead of being stuck with a phone to my ear for hours, it was absolutely worth it for me. No, they don't bypass any queues or use special access - they simply call and wait on hold just like anyone else would. The difference is that they have systems set up to do this at scale for many customers simultaneously. When they reach a human representative, they connect you immediately. It's basically paying someone else to waste their time on hold instead of wasting your own time. I was skeptical too until I tried it.

Are you sure about that? I'm using TaxAct Free and it let me enter a 1099-NEC, though I only had one with a small amount ($2800). Maybe it depends on how much contractor income you have or if you need to file Schedule C?

I think it might depend on your specific situation and how much you're claiming in business expenses. The free version will let you enter 1099-NEC income, but it limits your deductions and business expense categories. With my situation, I needed to claim home office, vehicle expenses, and some specialized equipment, which required the Premium version. If you're just reporting the income with minimal or standard deductions, the Free or Deluxe versions might work fine for you. I should have been more specific in my original comment.

That's not a good idea. The 1099-NEC and 1099-MISC are different forms reported differently to the IRS. If you enter NEC income as MISC, it will create a mismatch in the IRS systems. The IRS receives a copy of your 1099-NEC directly, and if you report it as MISC, their automated matching system will flag the discrepancy, which could trigger correspondence or even an audit. TaxAct definitely supports 1099-NEC - you just need to find the right section as others have mentioned above. It's worth taking the time to enter it correctly rather than risking problems with the IRS later.