I got a mail from IRS saying that I may be liable for self-employment tax. This is from 1099-MISC which I got from commission refund of buying house.

I got a mail from IRS saying that I may be liable for self-employment tax. This is from 1099-MISC income $40,200 which I got from commission refund of buying house which is a one time thing. How do I explain that I am not liable for self-employment tax. 

Hal_Al
Level 15

Get your taxes done using TurboTax

The IRS considers anything in box 7 of 1099-MISC to be self employment income. It's up to you to prove to them it was anything else. Start by writing back to the IRS explaining the circumstances. Attach copies of any documentation you have (closing statement?). 

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