1099-misc not self employeed

[Hollyjayyxo]

I received a 1099 not from my employer but I am not self employed. Long story short - I sell warranties and that company gives me gift cards for certain contests or incentives and after I made so much in gift cards they had to send me a 1099 to claim it on my taxes. So it’s not from my employer but I’m not self employed and it’s wanting me to put in a business name and address and all of that. How should I file it?


Also, my husband is a local cop and works security at a church on Sunday’s. It’s an “overtime detail” through the Pd but the church pays him with a check. They don’t collect taxes so they sent us a 1099. Same thing with him, it’s not a business, it’s an overtime detail, how should I file?

[PaulaM]

If the 1099-MISC has box 7 entries, then the IRS considers this self-employment income and you are in business for yourself. Record each 1099-MISC under a schedule C for your 'business'. You can use your name, SSN and address for the business. You may not consider yourself self-employed, but this is how it is recorded for tax purposes.

The net income will be subject to self-employment taxes (SE) but you also receive a deduction for 1/2 of the taxes as an adjustment to income. This means that you will not be paying anymore taxes than you would had each of you been a W-2 employee. You just would have been paying your share of SS evenly throughout the year, instead of all at once.