turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

If I got a 1099 do I have to file schedule c

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

6 Replies
MichaelDC
New Member

If I got a 1099 do I have to file schedule c

It depends on which Box of the 1099-MISC the income is reported. If you have "Non-employee compensation" (Box 7 of a 1099-MISC), according to the IRS it is considered income from self-employment. You are considered to have a self-employed "business" and you are the "owner".  TurboTax will help you report it as Business Income on a Schedule C or C-EZ. 

If you have only income from self-employment and no expenses, there is no need to upgrade from Deluxe. If you do have expenses, however, that will trigger an upgrade to the TurboTax Self-Employed edition.

You may be able to deduct business expenses directly from that income. 

TurboTax will guide you through the entries of your "business".

How to get there  

1.       type Schedule C in the Search Box at the top of the screen (you may see a magnifying glass there).  

2.       Click Jump to Schedule C.  

Follow through the interview in the Business section. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful. 

This may also be helpful:

https://ttlc.intuit.com/replies/5559255

 

If I got a 1099 do I have to file schedule c

My employer does not take out taxes.    I am not a contractor or self employed. 

Carl
Level 15

If I got a 1099 do I have to file schedule c

My employer does not take out taxes. I am not a contractor or self employed.

Regardless of what you or I may think or want, if your have a 1099-MISC with income reported in box 7, then as far as the IRS is concerned it's self-employment income. There are rare exceptions. But your reference to "my employer" indicates you don't come anywhere close to an exception.

The income must be reported on SCH C as self-employed income. If the amount is more than $400 then in addition to regular taxes on that specific income, you will also pay a 15.3% self-employment tax. The SE tax is basically the employer side of social security and Medicare. So in a sense, all you're doing with the SE tax is paying your future self.

 

If I got a 1099 do I have to file schedule c

If you think your employer has reported your taxes incorrectly, fill out IRS Form 3949-A as soon as possible and send it in.  They will do an investigation.  You are *NOT* "self-employed as far as the IRS is concerned".  Do your taxes as if they gave you a W-2, and select the option that says you are estimating your income.  If you have other employment options available, get another job, and sue your current, soon to be former, employer for the back taxes that you owe.

ColeenD3
Expert Alumni

If I got a 1099 do I have to file schedule c

There are tests the IRS applies to determine if you are an employee or not. It is not as simple as just deciding that you are not self-employed. On the other hand, just because an employer decides that he doesn't want to pay your SE tax, that does not automatically make you self-employed.

 

Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

 

1.       Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?

2.       Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)

3.       Type of Relationship: Are there written contracts or employee type benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

 

However, the only way around this, is to file a Form 8919. The qualifications and instructions are available in the link below.

Workers who believe they have been improperly classified as independent contractors by an employer can use Form 8919, Uncollected Social Security and Medicare Tax on Wages to figure and report the employee’s share of uncollected Social Security and Medicare taxes due on their compensation. See the full article Misclassified Workers to File New Social Security Tax Form for more information.

 

If you are, indeed, self-employed, you will need to file a Schedule C. Schedule C, Profit or Loss from Business is an IRS form filed by sole proprietors and other self-employed taxpayers.

 

 

infoalw
New Member

If I got a 1099 do I have to file schedule c

You can also request a corrected W-3 from your employer,they probably will refuse to give you one.Keep in mind it's your responsibility to report the corrected amount. If not you will be held responsible,and you may be shorted retirement income,because you submitted incorrected income.Don't allow these Employers to trick you, and get you fined by the IRS.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies