If the church 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"
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. 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) on any profits greater
than $400. These types of payments are frequently done this way. Your
"employer" is not the only one.
The IRS also considers undocumented cash income (no W-2 or 1099-MISC), for
work performed, to be self employment income.
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
______________________________________________________________________________________________________
TurboTax also has another free
product called the FREEDOM Edition (not to be confused with the regular Free
Edition). It has free Federal preparation and free State preparation. There is no efiling
fee. It is not available after October 15
The FREEDOM Edition can handle a 1099-MISC.
The Freedom Edition is more fully-featured than the regular Free
Edition. The Freedom Edition can prepare Schedule A, C, D, E, and F that
the Free Edition cannot. It will prepare a Form 1040 or 1040A or 1040EZ.
For Freedom Edition a user needs to meet only ONE of these qualifications:
- AGI of $33,000 or less
- or active duty military (including
Reservists and National Guard) with a military-issued W-2 and a 2017 AGI
of $66,000 or less
- or eligible for the Earned Income
Credit (EIC aka EITC).
The FREEDOM Edition is located at:
https://turbotax.intuit.com/taxfreedom
How to switch and start over in Freedom Edition
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition
