How do I file wife's 1099-NEC from internship if she's not self-employed or a student?

Your situation is actually pretty common! When companies pay people as contractors instead of employees, they issue 1099-NECs regardless of whether the person considers themselves "self-employed" or not. Unfortunately, for tax purposes, receiving a 1099-NEC means the IRS will consider your wife self-employed for that income, even if it was just a temporary internship. So yes, you'll need to file a Schedule C to report this income, and she'll likely have to pay self-employment taxes (which is basically both the employer and employee portions of Social Security and Medicare taxes). The good news is that if she had any expenses related to this work (transportation, home office if applicable, supplies, etc.), she can deduct those on the Schedule C to reduce the taxable income. Even if she used their equipment in their office, she might have had other expenses. When you're using TurboTax, just follow the prompts for reporting 1099-NEC income, and it should guide you through completing the Schedule C and calculating the self-employment tax.

After reading about your situation, I wanted to share something that helped me with a similar issue last year. I had consulting income on a 1099-NEC but was confused about all the self-employment rules. I used https://taxr.ai to upload my 1099-NEC and got a detailed explanation of exactly how to file it correctly. The tool analyzed my specific situation and flagged that I was probably misclassified as a contractor when I should've been an employee (similar to what might be happening with your wife). It even explained which deductions I qualified for based on my specific situation and showed me how to properly document everything to avoid audit risks. The best part was getting personalized guidance on whether to file an SS-8 form to contest the classification. For the price, it saved me way more in proper deductions and potential penalties I would have faced from filing incorrectly.

Just wanted to update that I tried out taxr.ai after being skeptical, and wow - it actually delivered exactly what I needed. I uploaded my 1099 forms and immediately got a detailed breakdown showing I was paying too much self-employment tax because I was misclassified. The report explained exactly which parts of my work qualified me as an employee vs contractor according to IRS rules. It even generated a letter I could send to the company explaining the misclassification with all the relevant tax code citations. I was able to show this to my employer who agreed to issue a corrected W-2 instead of the 1099. Saved me about $2,300 in self-employment taxes I shouldn't have had to pay! Plus they explained exactly which business deductions I could legitimately take for the contractor work I did that actually qualified. Much better than the generic advice I was finding online about contractor vs employee status.

I had the exact same problem with my husband's consulting gig last year! What made it worse was that I kept trying to call the IRS to get clarity on how to handle it properly but could NEVER get through to a human. After weeks of frustration, I found https://claimyr.com and their service was incredible. You might want to check out their demo at https://youtu.be/_kiP6q8DX5c to see how it works. Instead of waiting on hold for hours, they navigated the IRS phone system and called me back when they had an actual IRS agent on the line. The agent confirmed we needed to file Schedule C but also explained we could file Form SS-8 if we believed he was misclassified as a contractor. She walked us through exactly what documentation we'd need to make that case. Total game-changer for getting definitive answers from the actual IRS instead of just opinions online.

I need to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was desperate to ask about some 1099-K issues. I figured I'd waste $20 and prove myself right. Instead, I got a call back in about 40 minutes with an actual IRS representative on the line. I could tell it was legitimate because she had access to my previous tax records when I verified my identity. She gave me specific guidance about my 1099 situation that I couldn't find anywhere online. The agent told me exactly which forms to file and even gave me a direct reference number for the case if I needed to follow up. For anyone dealing with contractor vs. employee classification issues like the original poster, getting direct confirmation from the IRS about your specific situation is invaluable. I'm actually using it again today to ask about some other tax questions before I file.

Everyone here is giving advice about forms and services, but I think they're missing something important - you might want to look into whether the company is taking advantage of interns by misclassifying them to avoid paying employment taxes. I worked in HR for years, and companies often try to save money by calling workers "contractors" when legally they should be employees. The IRS has a 20-factor test they use to determine proper classification, and from what you described (working in their office, using their equipment, set hours), your wife sounds like she should have been classified as an employee. This isn't just about your taxes - it's potentially a labor law violation. You could report them to your state's labor department or the IRS. In many states, there are penalties for misclassifying employees.

Anyone know if TurboTax handles this situation well? I've got a similar issue with a 1099-NEC from a part-time teaching gig, and I'm wondering if I need to upgrade to the Self-Employed version or if Deluxe would cover it.