topic Reporting 1099-MISC that is not related to business in Business & farm

Reporting 1099-MISC that is not related to business

alexbern65 — Fri, 07 Feb 2020 21:05:24 GMT

Hello,

My wife worked few weeks in 2019 as a sales person in a private store for 1099. I am entering this 1099-MISC info as personal income, but TurboTax takes me to the business section where it wants to treat this data as _business_ income and asks lots of questions about my wife's business. But this is not a business, and not her business, she was just working for someone.

How do I make TurboTax not associate this income with a business and just treat it as personal income?

Thank you

--Alex

Re: Reporting 1099-MISC that is not related to business

MarilynG1 — Fri, 07 Feb 2020 21:21:02 GMT

As you go through the entry questions for your wife's 1099-Misc, choose 'Not her main job' and 'No intention to earn money' (screenshots).

The income will be reported as Other Income on your return.

Re: Reporting 1099-MISC that is not related to business

alexbern65 — Fri, 07 Feb 2020 21:54:19 GMT

Looks like that worked, thank you!

Re: Reporting 1099-MISC that is not related to business

sjlocke — Fri, 07 Feb 2020 21:56:48 GMT

That sort of seems like lying. No intent to earn money?

I was told a few years back that when you enter a 1099 it just makes a schedule C and that's the way it works.

Re: Reporting 1099-MISC that is not related to business

MarilynG1 — Fri, 07 Feb 2020 22:01:24 GMT

My pleasure!

Re: Reporting 1099-MISC that is not related to business

alexbern65 — Fri, 07 Feb 2020 22:41:18 GMT

The problem is, it makes this working at the store fore few hundred dollars stint into a business, and the questions it asks are irrelevant. I am sure thee are situations that are applicable for this, though. Just not ours.

--Alex

Re: Reporting 1099-MISC that is not related to business

sjlocke — Fri, 07 Feb 2020 22:48:04 GMT

https://www.irs.gov/faqs/small-business-self-empl[product key removed]ess/form-1099-misc-independent-contractors
"Generally, if you're an independent contractor you're considered self-employed and should report your income (nonemployee compensation) on Schedule C (Form 1040 or 1040-SR), Profit or Loss From Business (Sole Proprietorship). Most self-employed individuals will need to pay self-employment tax (comprised of social security and Medicare taxes) if their income (net earnings from self-employment) is $400 or more. Use Schedule SE (Form 1040 or 1040-SR), Self-Employment Tax to figure the tax due."

and: https://ttlc.intuit.com/community/business-taxes/discussion/if-i-got-a-1099-do-i-have-to-file-schedule-c/00/778193

"It depends on which Box of the 1099-MISC the income is reported. If you have "Non-employee compensation" (Box 7 of a 1099-MISC), according to the IRS it is considered income from self-employment. You are considered to have a self-employed "business" and you are the "owner". TurboTax will help you report it as Business Income on a Schedule C or C-EZ. "