Do I file Schedule C if I'm already filing 1099-NEC for consulting work?

You definitely need to report your 1099-NEC income on Schedule C, but it shouldn't be counting twice! The 1099-NEC form just reports the income you received, while Schedule C is where you actually calculate your profit from self-employment. When using tax software, you should only be entering the 1099-NEC information once. The software should then guide you through completing Schedule C using that same income information. It sounds like you might have manually entered the same income in two different sections of your tax software. Try going back and reviewing how you entered the information. You should see an option to report the 1099-NEC income as self-employment/business income, which will then flow to Schedule C automatically. This will allow you to report any expenses (though you mentioned you don't have any) and calculate your net profit correctly.

I had this exact problem last year! I spent hours trying to figure out why my taxes looked so off until I discovered taxr.ai (https://taxr.ai). It's seriously a lifesaver for self-employment tax situations. I uploaded my 1099-NEC and it immediately flagged that I was double-counting my income. The tool walked me through exactly how to report my consulting income correctly so it only showed up once. It also explained how the Schedule C works with 1099 income in plain English - basically what the previous commenter said but with step-by-step guidance for my specific situation.

Just wanted to update after trying taxr.ai from the comment above. I was really skeptical at first but decided to give it a shot since I was making the same double-counting mistake with my 1099-NEC income. It actually saved me a ton of headache! The tool analyzed my situation and showed me exactly where I was entering my consulting income twice. It gave me step-by-step instructions with screenshots for my specific tax software. What surprised me most was how it explained WHY I needed to report on Schedule C instead of just telling me what to do. Ended up saving me about $3,400 in taxes that I would have overpaid. Definitely recommend checking it out if you're confused about self-employment tax reporting.

If you're still having issues figuring this out, you might want to call the IRS directly for clarification. I know, sounds terrible right? But I had major issues with my Schedule C last year and finally got it sorted after speaking with an agent. I used Claimyr (https://claimyr.com) to get through to a real person at the IRS without waiting on hold forever. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly how to report my 1099-NEC income on Schedule C correctly. Turns out I was making a simple mistake in my software that was causing my income to be counted twice, similar to what you're experiencing.

Okay I have to apologize for my skeptical comment above. I was frustrated after wasting so much time trying to reach the IRS about my 1099 issues. I tried that Claimyr service out of desperation and... it actually worked exactly as described. Got a call back in 37 minutes and was connected to an IRS rep who helped sort out my Schedule C confusion. Turns out I had been entering my 1099-NEC income in the wrong section of my tax software which was causing it to be counted twice - EXACTLY the problem the original poster was having. The agent walked me through fixing it step by step. Saved me from overpaying about $1,700 in taxes. Still kind of shocked this actually worked after all my failed attempts to call them directly.

Here's a simple explanation of what's happening: The 1099-NEC shows income you received as a self-employed person, and Schedule C is where you report that income along with any expenses to calculate your net profit. Think of it this way: - 1099-NEC = The record of what someone paid you - Schedule C = Your business tax form where you report that income They work together, not separately. Your tax software should only ask you to enter the 1099-NEC information once, then use that information to help fill out your Schedule C.

What tax software are you using? This matters because different programs handle 1099-NEC entry differently. I use TurboTax and it automatically asks about Schedule C after I enter a 1099-NEC, but it doesn't double-count the income.

I ran into this exact same problem when I first started doing freelance work! The key thing to understand is that you're not actually filing "both" - the 1099-NEC and Schedule C work together as part of one process. Here's what's probably happening in your tax software: You entered the 1099-NEC information correctly the first time, but then later when the software asked about "business income" or "self-employment income," you entered that $12,500 again thinking it was a separate requirement. That's why you're seeing $25,000 total. The fix is simple - go back and remove one of those entries. Keep the 1099-NEC entry and let the software automatically flow that information to Schedule C. Don't manually add the same income amount anywhere else in the program. Even though you have zero business expenses, you still need the Schedule C because it's required for all self-employment income. It will show your gross income ($12,500), zero expenses, and net profit ($12,500). This is also what triggers the calculation of your self-employment taxes. Most tax software handles this pretty intuitively once you know not to double-enter the same income. Which program are you using? That might help others give you more specific guidance on where to look for the duplicate entry.