My husband has a 1099-MISC from working landscaping. He does not own the company though. TurboTax is making it difficult explaining that. Help! :)

Forum|Forum|7 years ago
June 6, 2019
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TurboTax Self Employed Online

Anonymous

If you perform work for someone you are either an employee, and you receive a W-2, or you are an independent contractor and receive a 1099-MISC, with an amount in box 7, nonemployee compensation.

If you receive Form-1099-MISC, with an amount in box 7, your are presumed to be self-employed. You do not own the company that issued the 1099-MISC, but rather have your own business, which is generally reported on your individual tax return on a Schedule C. The advantage of a Schedule C is you are allowed to deduct ordinary and necessary expenses from your income, the disadvantage is that you must pay self-employment tax.

The issue if someone is an employee or independent contractor, is very complicated and maybe something you want to check into if you feel reporting income as an independent contractor is inappropriate, click here for the requirements for an independent contractor.