AnnetteB6
Expert Alumni

Business & farm

Some aspects of the tax code are certainly harder to understand than others.  Based on the questions you posted, you are filing a Schedule C as a self-employed person because the business that paid you did not consider you to be their employee.  If you were an employee, you would have received a W-2 instead of a Form 1099-NEC.  

 

That being said, because you received the Form 1099-NEC it is reported on a Schedule C for self-employment.  The Schedule C is reporting income and expenses from your business.  Your business is to provide a service for the hot sauce company.  In simple terms, you did materially participate in your own Schedule C business because you worked to make that income and you did not sit back and have someone else do it for you.  

 

@PlzStopLobbying2MakeTaxesHard 

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