Yes, you need to include all self-employment income on your return(s). If you have expenses that relate to this business income, you can offset some or all of your self-employment income with related business expenses on Schedule C. Additional social security tax is accessed on "net" self-employment income after it has been offset by any related expenses.
You will need to upgrade to the Turbo Tax Self-Employment online edition or the CD/download for Home & Business to be able to declare any related business expenses.
If you have no business expenses to offset your 1099 self-employment income, then you only need to upgrade to the Deluxe edition to report this income.
