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Why did I get a 1099 form for 2022 taxes, it's in the amount of $700, do I have to pay taxes on this? Couldn't they just have taken it out in the beginning

 
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2 Replies
MarilynG1
Expert Alumni

Why did I get a 1099 form for 2022 taxes, it's in the amount of $700, do I have to pay taxes on this? Couldn't they just have taken it out in the beginning

Did you receive a 1099-NEC or a 1099-Misc?  If so, you were considered an independent contractor, rather than an employee, and can report this as Self-Employment Income.  The good news is that you can claim expenses against this income.

 

Type 'Schedule C' in the Search area, then click on 'Jump to schedule c' to get to this section. 

 

However, if you received a 1099-Misc for some other reason than work performed, click this link for more info. 

 

 

 

Edited 1/31/2023 | 12:36 pm

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Why did I get a 1099 form for 2022 taxes, it's in the amount of $700, do I have to pay taxes on this? Couldn't they just have taken it out in the beginning

Is it from California?  That sounds like the California Middle Class Tax Refund.

 

Go to Federal > Wages & Income, you might need to continue though the general screens.
When you come to the Wages - Your Income screen click on Add Income or
scroll down to Other Common Income, then 1099Misc.
Put the amount in box 3 and follow the prompts.

The next screen says…..
Do any of the uncommon situations apply? In my Desktop program the 3rd item listed is California Middle Class Tax Refund.


When you click on that then at the bottom it will say....The California Middle Class Tax Refund (MCTR) will not be taxable on your California or federal returns. It will show up as Other Income on Schedule 1 line 8z and also as a separate negative amount to zero it out.


You don't have to do anything for the California return. It will be automatic.

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