Misc 1099

kimjimmccready — Sun, 17 May 2020 14:26:04 GMT

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.

Re: Misc 1099

RobertG — Thu, 21 May 2020 17:53:56 GMT

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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Misc 1099

Re: Misc 1099