1099-misc help!

Forum|Forum|6 years ago
February 25, 2020
1 reply
6 views

I received a 1099 misc for accompanying for church services throughout the year. I am a stay at home mom and do this on the side. I am an RN by profession but am not currently employed as an RN. I wouldn't classify this as my main job, but I feel like TT is wanting me to call myself self-employed and is asking me if I "materially participated" and for a principal business code. Is there a way to enter this just as extra income and not as if I am self-employed? Is that the correct route to go? I made just over $2k so enough to need to file....Thank you for your help!

HelenC12

Level 15

Yes, self-employed is how the tax code states you need to report the $2,000 side job income. Had this been a part-time job at Starbucks or a Walmart, you would have paid in Federal Income Tax, State Income Tax (if applicable), Social Security Taxes and Medicare Taxes. Filing as self-employed allows the government to collect all these taxes.

Please see the following TurboTax FAQ for additional information:

How does my side job affect my taxes?

You're considered self-employed—even if it’s just something you do on the side, like drive for Uber, babysit, or blog.

Your taxes are handled differently than when you're an employee of a company.

As a self-employed individual you:

Will pay self-employment tax (because income tax and Social Security aren’t deducted from your pay)
Will get a 1099-MISC or 1099-K (unless you only accept cash or personal checks)
File a Schedule C, Form 1040 (this is how you report business expense or loss of income)
Can deduct money you spent on work-related expenses (like mileage, home office expenses, and mobile phone use)
Can estimate the taxes that are due and make quarterly estimated tax payments during the year

Get started by entering your income from self-employment. We'll handle the rest, from creating the forms you need to reviewing work-related expenses that can help reduce your taxes.

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saesooner

Level 2

I am in a similar situation and did not make any estimated quarterly tax payments or self-employed fica payments. Does turbotax calculate these and deduct them from my refund? Asked a different way, If I file using turbotax am I actually paying the self-employed fica taxes correctly? Or do I need to pay these a different way?

VolvoGirl

Level 15

Yes. Turbo Tax calculates the self employment tax and adds it to your tax due or reduces your refund.

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.