It must only be shown as business income. If not, the IRS will adjust your tax return on your behalf and send you a notice for taxes due and underpayment penalties and interest.
You will file a Schedule C as a self-employed business owner. The Schedule C will flow onto your individual
income tax return (Form 1040) and be netted with other personal income and
expenses.
How to get to that
area
:
While inside the software and working on
your return, type Schedule C in the Search at the top of the
screen (you may see a magnifying glass there). There will be a popup that
says Jump to Schedule C. Select that to get to the general
area.
When you set up your business, you can use your own name,
address, and social security number (if you don't have a business name
or EIN). Then,
when done with the Business Profile:
- go to Business Income and
Expenses
- select Edit next
to your business (if it is there)
- scroll to Business Income
- on
the next screen, you will see a place to enter a Form 1099-MISC
Follow through all the areas in the Business section of the
TurboTax software and it will provide you with a lot of assistance. You'll
notice blue links that have more information and details about the particular
sections that will be extremely helpful.
Also, this link may be helpful to you IRS Small Business
Help Center .
