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Misc 1099

We have a received a 1099-MISC in 2018 & 2019 (from the same company; issued exactly the same). 

 

2018 taxes:  the income was entered on line 21 Other Income on the schedule 1 "additional income".  Nothing else was entered or asked (no reason for monies, no schedule C, etc.)

 

2019 taxes: entered the amount under 1099 MISC, was asked what the money was for and was prompted to a schedule C asking for company name, etc.

 

Questions: 

1. Why is the tax amount different?  I tried entering the correct way and I also entered it under additional income without 1099-Misc.

2.  Why the change including the reason for monies and the addition of the schedule C?

 

My husband is a HVAC tech - he received these monies as commission (bonus for sales) on the sale of equipment from the supplier. The 1099-misc is from the supplier. He is not an employee of the supplier nor is he self-employed.

 

TIA for any help.

1 Reply
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Employee Tax Expert

Misc 1099

The income your husband is receiving from sales commissions is self employment income, subject to self employment tax and reportable on Schedule C.

 

He is being paid on a 1099 for services provided, and to that extent he is an independent contractor.

 

The income for 2018 should have been reported on a Schedule C as well. 

 

All earned income is subject to Social Security or self employment tax.  If you are receiving earned income, you are either an employee or you are self-employed. 

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