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Do I actively participate in the operation of my business if I am an independent contractor that worked 35 hours per week all of 2022 and I am their only employee?

I essentially run the business, but I do not own it and I got paid nonemployee compensation from the owner/my boss.
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HelenC12
Expert Alumni

Do I actively participate in the operation of my business if I am an independent contractor that worked 35 hours per week all of 2022 and I am their only employee?

You aren't an independent contractor if you're an employee. 

  • Independent contractor's have their own business and get Form 1099-NEC at tax time. 
  • If you're an employee, you should get a W-2 at tax time.

If you received Form 1099-NEC you were considered an independent contractor. The IRS requires independent contractors to report their income on a Schedule C, Profit or Loss From Business. As an independent contractor, you pay 100% of your self-employment (SE) taxes. On the plus side, you can deduct your mileage and any other expenses you had in relation to this job.

 

TurboTax is not asking you about your bosses business, it's asking about your business.  

  • When answering questions about your business, yes, you actively participate. 
  • When you set up your "business", enter that your name, address and SSN is the same as the business.

To enter your self-employed form 1099-NEC:

  1. Type Form 1099-NEC in the search bar and select the Jump to form 1099-nec.
  2. Continue with the onscreen interview until complete.

To enter your self-employment business expenses, like home office, vehicle mileage, and supplies, click here.

 

For additional information, please see Am I an employee or an independent contractor?

 

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