My wife has her own esthetics business and we use schedule C. Part of her income came from working as an independent contractor under another day spa business. Therefore, she received a 1099-Misc from that business. Should that income be reported under the Personal Income section or should it be reported on the Schedule C as business income? Reporting it as personal income puts the business in the loss category on the schedule C.
A tax year 2019 Form 1099-MISC with an amount in box 7 is self-employment income. Period. If the amount is in box 3 then its probably still self-employment income. If you claim it's not self-employment income then the program will ask you more questions to verify your claim. You only risk audit on this if you claim box 3 income is not self-employment income for more than 3 years in a row.