topic Re: 1099-Misc Confusion in Get your taxes done using TurboTax

1099-Misc Confusion

gortified — Fri, 07 Feb 2020 04:35:00 GMT

I am a consultant. I am not self employed nor an employee. I am not considered a independent contractor. I only received money as a consultant/non-employee. I got a 1099-misc, entered all the data in turbotax and am lost. I am asked questions like report any gains or losses? I guess a gain might be what I earned but I cannot help but feel that the 1099-Misc is not the correct form. What is right, next, etc. Thanks.

Re: 1099-Misc Confusion

LeonardS — Fri, 07 Feb 2020 20:37:00 GMT

When you work as a consultant, you are considered a self-employed individual for income reporting purposes. If you earn more than $600 in a year, the client has to provide you with a Form 1099-MISC, the IRS is also provided a copy.

You will enter all your Form 1099-MISC income and expenses related to your consulting business on Schedule C Profit or Loss from Business.

Re: 1099-Misc Confusion

Steve M — Sat, 08 Feb 2020 23:43:01 GMT

I received a 1099-misc for being a volunteer Fireman. The amount was $1765 which is over the $600 but I'm not self employeed. This $$ is what is received for making medical and fire calls, is there a way around this tax since I'm not a business ?

Re: 1099-Misc Confusion

KrisD15 — Sun, 09 Feb 2020 01:38:08 GMT

Yes, you can eliminate the Self-Employment tax, but you can't write off any expenses.

Click Federal

Click Wages & Income

Click “See All Income” if needed

Scroll down (PAST SELF-EMPLOYMENT) to “Other Common Income”

Click “Show more”

Scroll down to “Form 1099-MISC”

Click Start

Enter the 1099-MISC and Continue

On the “Describe the reason for this 1099-MISC” screen enter something like “Volunteer Firefighter” and Continue

Select “None of these apply” and Continue

Select “No, it didn’t involve work like main job” and continue through the interview selecting the appropriate answers for a one-time payment to cover expenses and not job related work

Report that this was the first year you received this 1099-MISC

The amount from the 1099-MISC will be reported as Other income on the 1040 line 7a, not as Self-employment

Re: 1099-Misc Confusion

Steve M — Sun, 09 Feb 2020 03:18:08 GMT

Thank You...it solved my issue

Re: 1099-Misc Confusion

flyinxlt — Fri, 06 Mar 2020 14:36:05 GMT

This was exactly what we needed. Thank you for outlining the steps. It was very helpful!!

Re: 1099-Misc Confusion

thetrgibsons — Sat, 14 Mar 2020 20:16:20 GMT

Thank you for the clear explanation - though the text has changed slightly, but this method still registered the amount entered for the 1099-misc in the Business Income and Expenses (Sch C) section.

I do not have a business so I don't understand why I have to pay more taxes just because this side gig decides to pay me as a non-employee. I should only file Sch C if I own a business right? Can I just enter the amount of income on Sch 1, line 22 and not enter it as 1099-misc income?

Re: 1099-Misc Confusion

thetrgibsons — Sat, 14 Mar 2020 20:42:07 GMT

Correction - Can't I just enter the income on Sch 1, Line 8? (Sch 1, Line 8, Other Income Statement, Line 22)

Entering it as a 1099-Misc and having "Business Income" results in paying $236 more in taxes when I don't own or operate a business. I just work a side gig in the summer and the employer chooses to not make me an employee so I do not get a w2.

Thanks!

Re: 1099-Misc Confusion

KrisD15 — Sat, 14 Mar 2020 20:56:37 GMT

Right, if you are an employee, your employer should issue you a W-2.

If you are doing a "side gig" that sounds like you are self-employed.

Remember also that the only difference in tax is that the portion of your FICA (social security tax) that is paid by the employer when you're an employee is paid by you when you're self-employed, AND you get a credit for half of that on your 1040. The biggest difference is that the tax is not withheld from your paychecks as it is when you are an employee, so you have to pay it on your tax return. .

Here is a link about the difference between a 1099 contractor and a W-2 employee.

1099 or W-2

If you feel that you should be treated as a W-2 employee, you can lodge a complaint against the employer by filing Form SS-8 with the IRS.

IRS Form SS-8

Re: 1099-Misc Confusion

BeckyBat — Fri, 27 Mar 2020 20:42:10 GMT

I've been trying to figure this out for 2 hours. THANK YOU!

Re: 1099-Misc Confusion

LeonardS — Fri, 27 Mar 2020 20:54:10 GMT

You will enter all your Form 1099-MISC income and expenses related to your consulting business on Schedule C Profit or Loss from Business.

Re: 1099-Misc Confusion

facjsmith — Tue, 14 Apr 2020 02:27:49 GMT

When I enter my 1099 MISC information Turbo Tax automatically adds it in the Business Income section as Schedule C. Now it's listed twice under the Income tab. Isn't this double reporting this amount?

Re: 1099-Misc Confusion

KrisD15 — Tue, 14 Apr 2020 02:38:47 GMT

If you only entered it once, it should only be counted once.

I do think that the program tells you your business income AND THEN tells you your income, so in that sense it might seem like the program is counting it twice, but it's just that your business income is included in your total income.

Re: 1099-Misc Confusion

BJM5 — Sun, 17 May 2020 19:48:45 GMT

Good instructions for entering a one time pymt for research & translating not related to my job- the income amt is now showing on the 1040 line 7a schedule but I am still getting schedule C errors wanting me to put in information for a business. Can I just leave out the schedule C in my printed return since it has no information on it? If I can't get rid of the schedule C in the program will this messup my state return which I haven't input yet?

Re: 1099-Misc Confusion

AnnetteB6 — Mon, 18 May 2020 13:51:52 GMT

Yes, since your income has been reported elsewhere on your tax return, the Schedule C is not needed.

Use the following steps and then click the trash can or delete beside the Schedule C business to remove it:

On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
This opens a box where you can type in “schedule c” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
The search results will give you an option to “Jump to schedule c”
Click on the blue “Jump to schedule c” link

@BJM5

Re: 1099-Misc Confusion

ErictheK — Mon, 20 Jul 2020 02:59:20 GMT

I followed exactly the steps you described above when I tried to enter a 1099-MISC for an MLP ETN but, instead of reporting it as "Other income", it populated the Schedule C line in the worksheet, generated a Schedule C and calculated and deducted self-employment tax. The only way I could get around that was to manually adjust the 1099 worksheet in Forms.

Re: 1099-Misc Confusion

Roughhouse369 — Wed, 22 Jul 2020 11:56:29 GMT

How can I get my fein number

Re: 1099-Misc Confusion

DoninGA — Wed, 22 Jul 2020 12:00:03 GMT

@Roughhouse369 wrote:

How can I get my fein number

Your FEIN? That would have been issued to you by the IRS after you applied for an EIN so only you would know your FEIN - https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Re: 1099-Misc Confusion

teshmi — Sat, 06 Feb 2021 22:39:36 GMT

I took a buy out from my company 2 years ago. One of the benefits was giving me $3600 to offset medical expenses.in 2020. It is on the 1099 Misc rather than my W2. No matter what I try to do, I either get that I am on Schedule C as a business (I am not) or if I try to put it as other income it says NOT to put in amounts on 1099-MISC. I am lost..

Re: 1099-Misc Confusion

DianeW777 — Mon, 08 Feb 2021 13:39:35 GMT

This income can be filed as other income by using the steps below. It's part of the buy out settlement.

Scroll down the page to the last section titled: Less common Income and click show more;
Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
Scroll down to the last option titled Other reportable income and select start or edit;
When it asks, "Any other reportable income?" say yes then you will make one entry
Enter this description: Medical Expense Offset > Enter the amount

This will carry the income to the Form 1040.