Misc 1099

[kimjimmccready]

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.

[RobertG]

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.