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I received a 1099-MISC form for residual commissions from my prior employer entered into Box 7- Nonemployee Compensation. I wasn't self-employed, in the classical sense. My roles after leaving were not related to sales, but the agreement with my former agency allowed me to collect commissions for up to 5 years. I don't believe I have to pay self employment tax on it, so I'm thinking that I may have by entering something incorrectly in prior returns.
If so, what could I check/not check to reduce the tax liability?
Hi there! It was from a prior role in sales. In Box 7, the amount is from residual commissions, but the return created a Schedule C. I didn't own a business! I suppose that because it was on form 1099-MISC that it assumed I had my own business? I suppose it makes sense.
If I can remove the Schedule C, then I suppose it will refund me any taxes I've paid for self employment.
Thoughts?
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