Regarding 1099-MISC and amending a Schedule C

[rodneyp4321]

So, my wife gets paid 1099 and received a 1099-MISC for tax year 2019.  She does not own the business.  The payer's TIN is different from the recipient's (her) TIN on the 1099-MISC.  She filed her 1040 without adding the Schedule C, which appears to have been a mistake on our part.  The payers  name is obviously different from hers since the payer owns the business and she does not.  However, it appears as though the tax code indicates she must add the Schedule C because it recognizes her as self-employed.  First, is this correct in this specific situation where she does not actually own the business?  Second, her tax software asks for name and address of the business as well as WHO THE BUSINESS BELONGS TO (with a drop down box that only allows her name to be chosen).  Does she choose her name simply because the payer and the tax code recognizes her as the owner of the business?  This is new to us and obviously we want it done correctly.  PLEASE HELP!  Thank you.

[DavidS127]

Yes, your wife must report the income reported on Form 1099-MISC as her self-employed income on Schedule C.  For tax purposes, she has a business because she as paid as an independent contractor.  The questions about name and address of the business are asking about her business, which can simply be her name and address.

If your wife incurred business expenses related to earning that income, those expenses can be deducted on that same Schedule C.

If your wife paid for her own health insurance policy (i.e., she was not eligible for health insurance where you or she worked as an employee) she can deduct the cost of her self-employed health insurance.

If she meets the requirements, she can deduct cost for an office in her home.

In addition to the regular income tax, your wife will pay 15.3% Self-Employment (SE) tax on her self-employed net income.  This is for her Social Security and Medicare tax.

You will need a version of TurboTax that supports reporting income from self-employment (Schedule C).  Generally that is TurboTax Online Self-Employed or TurboTax Home and Business Download/CD.

See the TurboTax article on Self-Employed income at this link.

[rodneyp4321]

Not to sound redundant, but she worked at an office that is not her home. The payer has a different name and is at a different location than her home. But, you are saying that doesn't matter and that she should put HER name and home address instead of the payer's name and address (where she actually reports for work).  Because she put the payer's name and address on the 1040 she filed.  I want to be sure the 1040X and Schedule C is perfect. 

Lastly, the only expenses she may have incurred would be traveling to the office.  There were really  no other expenses.  Can she include the traveling expenses?  If so, are fuel receipts the proof that is required for this?

Thank you very much for your very quick response and all future replies!  You have been exceptionally helpful!

[JohnW222]

You understood DavidS127 correctly – she shouldn’t enter the payer’s name and address.

As far as travel to the office… unfortunately, these expenses aren't tax-deductible. 

Her drive to and from her workplace is considered commuting, and commuting expenses are not an allowable deduction.

[rodneyp4321]

Ok, that makes sense.  You both have been great and very helpful!  I cannot thank you both enough for the quick responses.  She needs to provide the Dept of Labor with her Schedule C, so we are incredibly grateful. 

Be well and stay safe folks!