The problem, DawnC, is that after reviewing all the responses to questions posed on 1099-misc, I find that TurboTax seems to be telling everyone that if they receive a 1099-Misc with an entry in Box 7 that they are AUTOMATICALLY considered independent contractors and therefore self employed. And the software is set up that way as well. Having read it, the link to the IRS document in the comment above confirms that one can indeed receive an entry in Box 7 and yet not be self employed or in a business. In my opinion, TurboTax should spend more time helping clients figure out if they are indeed self employed rather than automatically defaulting them into that category because they have an item in Box 7. In your very reply from a year ago, in the Recommended Answer below you say: "The IRS has received a copy of the 1099-MISC, and since the income is reported in Box 7, they will expect it to be reported on Schedule C. " Can you at least now admit that it's possible to have an entry in Box 7 and not be self employed?
