Unsure of how to answer the "Tell us about your business" questions

[othergreg2]

Background info: My wife worked as a part time dance instructor for a dance studio owned by someone else and received a 1099-NEC from the studio for her services.  All work was performed outside of our home at the studio and she is not the owner of the dance studio. I'm entering her income in the "Business Income and Expenses (Sch C)" section of Turbotax and am unsure of whether or not to check the following boxes in the "Tell us about your business" question:

[  ] "I use my name as the name of my business"

[  ] "My business address is the same as my home address."

[  ] "I started or acquired this business during 2022."

Questions:

1. Would the "name" of the business be my wife's name? or the name of the Dance studio that is owned by someone else?

2.  Similarly, would the "business address" be our home address or the dance studio address? Note again that all work was performed at the dance studio, not our home.

3. I guess technically she "started this business during 2022" b/c that's when she started working at the studio?

[Bsch4477]

1. Use wife’s name 

2. Yes. Use your address. 
3.  Yes. Business began in 2022.

[VolvoGirl]

Here's some general info on self employment.....

You need to report all your income even if you don't get a 1099NEC, 1099K or 1099Misc. You use your own records. You are considered self employed and have to fill out a schedule C for business income. You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk.

After it asks if you received any 1099NEC it will ask if you had any income not reported on a 1099NEC. You should be keeping your own records. Just go through the interview and answer the questions. Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.

Turbo Tax Beginners Tax Guide for the Self Employed
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed...

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf

Publication 334, Tax Guide for Small Business
https://www.irs.gov/pub/irs-pdf/p334.pdf

[othergreg2]

Thanks for the responses! If you don't mind, I have a couple more related questions that should help me finish out this section:

1. "Did you play an active role in this business?" -I'm unsure of how to answer this. My wife worked <100hrs for the year but technically she did "perform all the work" of her independent contractor/dance instructor "business", so I think that makes this an active role right? On the other hand, if this is answered from the perspective of the dance studio, I would think my wife's instructor services would not be considered an "active role" b/c there were numerous other dance instructors at the studio as well who performed as much or more work than she did. Also my wife isn't involved in the management of the studio in any way.

2. Do I need to check the box that says "I sold or otherwise disposed of this business during 2022."? I think the answer is yes since she quit working for the studio in 2022.

3. Is her payment for dance instructor services considered "Qualified Business Income" (i.e. it is not treated as wages)? I am unsure of how to answer this b/c she was paid at an hourly rate, but no taxes were withheld and she only received a 1099-NEC for her work...not a W-2.

[Bsch4477]

1. Yes, she did play an active role. 
2.  If she doesn’t intend to work more in that field she ended her business. If she might continue then keep it open. 
3.  It is QBI.