My employer does not take out taxes. I am not a contractor or self employed.
Regardless of what you or I may think or want, if your have a 1099-MISC with income reported in box 7, then as far as the IRS is concerned it's self-employment income. There are rare exceptions. But your reference to "my employer" indicates you don't come anywhere close to an exception.
The income must be reported on SCH C as self-employed income. If the amount is more than $400 then in addition to regular taxes on that specific income, you will also pay a 15.3% self-employment tax. The SE tax is basically the employer side of social security and Medicare. So in a sense, all you're doing with the SE tax is paying your future self.
