Is TaxAct missing option to file 1099-NEC for contractors?

I feel like such an idiot now! I was looking under "Additional Income" instead of going through the Self-Employment section. Found it right where you said it would be. I swear I looked there before but maybe I was just panicking because the deadline is coming up. One more question though - do I still need to fill out a Schedule C even though I'm getting a 1099-NEC instead of a MISC now? The amount is only about $3,800 if that makes any difference.

Yes, you'll still need to complete a Schedule C even with the 1099-NEC. The change from 1099-MISC to 1099-NEC was just about which form reports the income, but the tax treatment remains the same - it's still self-employment income that needs to be reported on Schedule C. Since your income is $3,800, you definitely need to file Schedule C to report this income and any related business expenses. You'll also need to pay self-employment tax on this income (using Schedule SE). The good news is TaxAct will guide you through completing both of these forms once you enter the 1099-NEC information.

Does it work with other tax prep software too? I use H&R Block online and got two different 1099 forms this year. Also wondering if it can handle state tax forms or just federal?

I'm kinda skeptical about using third-party tools with my tax documents. How secure is it? I'm always paranoid about identity theft especially with all my personal info on tax forms.

It works with all the major tax software - I know people using it with TurboTax, H&R Block, and even direct filing with the IRS. It handles both federal and state forms, including identifying which state forms you need based on your situation. The security is actually really solid - they use the same encryption that banks use and don't store your actual tax documents after processing. They just extract the information you need and then guide you through using it. I was worried about that too initially but their privacy policy made me feel better.

Wait, how does Claimyr actually work? I thought it was impossible to get through to the IRS. Is this some kind of priority line or something?

This sounds too good to be true. The IRS phone system is notoriously terrible. You're telling me this service somehow magically gets you through when millions of people can't even get past the automated system? I'll believe it when I see it.

It's not a priority line - they use a system that navigates the IRS phone tree automatically and waits on hold for you. When an actual agent picks up, you get a call connecting you directly. It basically does the tedious part of waiting on hold so you don't have to. I was skeptical too! But I literally wasted 3 hours on multiple days trying to get through myself. With Claimyr, I put in my number, went about my day, and got a call when an agent was on the line. The whole process took about 25 minutes that day when call volumes were high. Some of my friends have gotten through in as little as 15 minutes during less busy times.

Does anyone know if there's a way to import the 1099-NEC directly from providers? Last year my investment company had direct import for my 1099-MISC but I don't see the option for the NEC form.

Some providers do support direct import for 1099-NEC now, but it really depends on your specific broker or payment platform. In TaxAct, when you go to the import section, look for a list of supported providers - they've been expanding the list. My main client uses Gusto for payroll and their 1099-NEC imported automatically, but my smaller clients who use other services didn't have that option yet. If direct import isn't available, you'll just need to enter it manually - it's pretty straightforward once you find the right section.

Does FreeTaxUSA handle multiple state returns too? I do freelance work across 3 different states and that's why I've stuck with TaxAct despite the price increases.