1099-Misc income - side work done - Do you answer Yes to Qualified Business Income? Moves it to Business Items but it is not his business

[cbmbmx]

Entered 1099 Misc income.  Qualified Business Income - the business is operated in the US and the income is not paid by a former employer.  If I select yes, it moves it to Business Items.  Is this okay?  It is not his business, he only worked there sporadically as needed.

[Coleen3 · Accepted solution]

It is a business for IRS purposes. You were not an employee, so by default you were an Independent Contractor.

[cbmbmx]

When answering Yes to Qualified Business Income it kicks it into the Business Items category.  Is this okay if it isn't his business?

[Coleen3]

Again, this is a business. It may not seem like one becase you did not take any official steps to open a business, but it is. Your income and expenses are reported on Schedule C Profit or Loss from Business. There are only two ways to report income from labor, as an employee and as an Independent Contractor. If you do not get a W-2 for your work, you must report your income on Schedule C.

[mrcuozzo]

you are not answering the question. Is it yes or no?