I received a 1099-MISC in 2017 for some work I did for a company. I filed 1099-MISC through TurboTax in my personal tax return as other income but didn't file Schedule C. I had other expenses that offset this income so my taxable income was $0.
Recently I received a CP2000 from IRS that revised my tax due, asked me to pay for the entire self-employment tax on this 1099-MISC, after I told them that I made no income in that year, they came back and ask me to attach the Schedule C. Here are my questions:
- Do I need to pay self-employment tax if I made no profit on this 1099-MISC? I am not operating a business, this is just a one-time compensation.
- If filing a Schedule C could help me to justify not paying it, should I use 2017 TurboTax and file an amendment, mail it, then give IRS a copy? What is my best option here?
Thank you so much!
