Independent Contractor Business Name

[betulerbasi]

My husband worked as an independent contractor for a business. When prompted, we entered that business's name because we thought that is what was being asked. He doesn't own the business. He just worked with them. From what I gathered, we weren't supposed to fill that field, is that correct? If so, does this need to be amended? 

[SharonD007]

You weren't supposed to enter the business name of the entity that paid your husband as a contractor. As an independent contractor who gets Form 1099-NEC for income, the IRS thinks the income is self-employment income. This is why TurboTax asks questions about your business. When TurboTax asked if the business had an EIN, did you put the number from the 1099-NEC?  If so, you will need to amend your tax return.  Please clarify,

[betulerbasi]

I didn't add an EIN number. Just the business name. If amending is needed, I will need to correct business name and address.

Also, does this error prevent the actual business from filing their taxes?

[RobertB4444]

No, it doesn't.  And you don't need to amend since you didn't enter the EIN.

Contractors are considered self-employed as opposed to being employees of a business.  So as far as the IRS is concerned your husband had a business for the year.  When the system is asking questions about the business that is the business that it is asking about.

You entered the name of the business that paid your husband which won't make any difference as long as you didn't also link it to the business' number.  

If your husband is paid by a 1099 next year as well you can enter the name of his business as whatever you choose it to be.  Or leave it blank if there is no name for the business.

@betulerbasi