It's not "wages".
Although it may be news to
you that you “have a business” (and most of the other people who get their first
1099-MISC); The IRS considers anything in box 7 of 1099-MISC to be self employment
income. You entered the 1099-Misc income, at Other Common income / income from a
1099-MISC . TurboTax (TT) completed Schedule C or C-EZ for you. You also have to pay
self employment tax (social security & Medicare) on any profits greater
than $400. So, TT also prepared schedule SE.
These types of payments are frequently done this way. Your
"employer" is not the only one.
