If the company sent you a
form 1099-Misc, with the amount of your pay in box 7, they do not consider you to be an
employee but "contract labor"
The IRS considers anything in box 7 of 1099-MISC to be self employment
income. Enter the 1099-Misc income, at Other Common income / income from a 1099-MISC
. TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to
deduct any expenses associated with this income. You'll also have to pay self
employment tax (social security & Medicare) . These types of payments are frequently done this way. Your
"employer" is not the only one.
You may have to upgrade to the Self
Employment version of TT. If you
have no expenses to deduct, there's a chance you may be able to use TT Deluxe
or Premier. Enter your income at the 1099-Misc screen (even if you didn't get a
1099-misc).
In TurboTax (TT), enter at:
- Federal Taxes tab
-
Wages & Income
-Scroll down to:
- Other Common Income
-Income from Form
1099-Misc
When asked why you got the 1099-Misc, select “Freelancer or
Independent contractor”
