lmcard01
New Member

Why does TT treat 1099-Misc box 7 as self employment when I don't have a business and I'm not self employed?

I don't have a business and I am not self employed. I worked for two weeks as a camp counselor and got a 1099-Misc for $600 in Box 7. No other 1099-misc income. No business expenses. No other business income. TT is saying that this $600 is self employment income (Schedule C) and subject to SE tax. IRS says otherwise. IRS says: "If you're not an employee of the payer, and you're not in a self-employed trade or business, you should report the income on line 21 of Schedule 1 (Form 1040)." IRS further says: "You're in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous." Obviously the activity in question is not "regular and continuous". But TT keeps saying I have a business just because of the 1099-Misc. Please see the following IRS discussion and resolve this apparent conflict between what the IRS says and what's happening in the Free File software. https://www.irs.gov/faqs/interest-dividends-other-types-of-income/1099-misc-independent-contractors-... This IRS discussion is in response to the question:

"Question
I received a Form 1099-MISC instead of a Form W-2. I'm not self-employed and don't have a business. How do I report this income?"

So how to I handle the 1099-Misc in TT so that it follows what the IRS says above? Thanks.