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Level 1
posted Mar 9, 2024 9:12:26 AM

1099-MSC but not a business owner

My spouse received a 1099-MISC for medical services but is not the business owner.  The software defaults to create a Schedule C.   Can I enter this income as a contractor without a Sch C?  I can delete that form but the income does not show on income sources, and a bunch of errors are found when reviewing the fed return.

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3 Replies
Expert Alumni
Mar 9, 2024 9:32:48 AM

It depends.  You indicated she is a contractor for medical services, however a 1099-MISC (box 3) would not indicate itself that it was self employment necessarily.

 

When you are entering the 1099-MISC there are some critical questions that would create a Schedule C.  If this is casual income that is not regular or derived from regular services then answer the following questions with a 'No'.  If the answer is 'Yes', then it should go to Schedule C as self employment.

  1. Did the ______ involve work that's like Wife's main job? 
  2. Did the ______ involve an intent to earn money?
    1. What is IRS Form 1099-MISC?

If you decide it should be self employment here are some helpful links for business expenses.

Level 15
Mar 9, 2024 9:37:28 AM

If the income was reported in Box 3 of the 1099-MISC and represents trade or business income, then it is properly reported on Schedule C.  In this scenario the income would be considered self-employment and your spouse herself would be the "business".  Her name & address would be entered as the "business" name & address on Schedule C.

 

If it is not trade or business income, then when you enter the 1099-MISC into Turbotax answer No to the question about it being like her main job, check that she got it in 2023, and answer No to the question about it involving an intent to earn money.  This should prevent a Schedule C from being generated.

 

 

Level 1
Mar 9, 2024 9:48:07 AM

Thank you for the quick response. 

I've since realized this 1099-MISC lists her employers TIN/EIN as the recipient as well as that employers business address and it's sent in my wife name by mistake.  I'll try to get that corrected.