Phillip1
New Member

Business & farm

In most situations with a 1099-MISC and schedule C, the taxpayer will check that they played an active role. The only time this would not be the case is if other people make the business decisions and do the work in her business and she simply is the owner of the enterprise.

If this was a contract position and she had no direct employees of her own or a partner in the business, she would have performed all of the activity in the business which is one of the possible tests for active or material participation.

View solution in original post