My wife is in the same category. She does not actually own the business. Her payer just chooses to pay her as 1099. This is the first year she has been paid this way, so we are struggling to understand the Schedule C form. The 1099-MISC information on the tax software was self-explanatory. It asks for payer's TIN, payer's name and address, and non-employee compensation. Ok, that's easy. Then came the Schedule C, which I'm told is required even though she doesn't in fact own the business. I've been instructed to put my wife's name and address as the name and address of the business on the Schedule C, which is clearly different from the payer's name and address on the 1040. The confusion gets deeper. She had no business-related expenses of any kind and therefore will not be reporting any. Is her "non employee compensation" considered profit? Is it considered her "business income?" Did she materially participate in the business? Is it cash or accrual? Did she start or acquire this business in 2019 (She doesn't own it so how could she have started or acquired it?) This is incredibly confusing. My WORD! If anyone could find the time and willingness to help, we would be forever grateful!
