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New Member
posted Jun 5, 2019 10:27:21 PM

I'm filing a Schedule C (received 1099 misc) but I'm being asked to "choose the accounting method for your business". I don't have a business.

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Level 15
Jun 5, 2019 10:27:22 PM

If you did work as a freelancer or independent contractor, and your income was reported to you in Box 7 of a 1099-MISC, you're considered to be a self-employed "business."  You'd enter that income as Business Income.  In most cases, your Accounting Method would be "Cash."  Your self-employed income and expenses are reported on Schedule C of your tax return.

This web reference explains the difference between the "cash" and the "accrual" methods of accounting: http://www.nolo.com/legal-encyclopedia/cash-vs-accrual-accounting-29513.html

1 Replies
Level 15
Jun 5, 2019 10:27:22 PM

If you did work as a freelancer or independent contractor, and your income was reported to you in Box 7 of a 1099-MISC, you're considered to be a self-employed "business."  You'd enter that income as Business Income.  In most cases, your Accounting Method would be "Cash."  Your self-employed income and expenses are reported on Schedule C of your tax return.

This web reference explains the difference between the "cash" and the "accrual" methods of accounting: http://www.nolo.com/legal-encyclopedia/cash-vs-accrual-accounting-29513.html