I am not self employed---why is my current return asking me to review my self-employment income and expenses ??? I do have job expenses ...but I am not self employed !

[joe-gall]

I have a full time sales position as a realestate agent with the kevin d flynn co. and I do have expenses related to that sales job...but I am not self employed. So why is tubo tax asking me to review mself-employment income and expenses ?

[BMcCalpin · Accepted solution]

I have to assume that you received a form 1099-MISC from said company, with an amount in box 7.

This means that the company believes that you are a contractor, not an employee. If you have earned income and you are not an employee, then the IRS considers that you are a business, that you are the sole proprietor of a business offering the services for which you are being paid.

Actually, if you have expenses related to this business, you should be happy that you are a business, because these expenses for a business are still deductible on Schedule C, but employee business expenses for the exact same thing as an employee are no longer deductible, thanks to the Tax Cut and Jobs Act of 2017, which eliminated a lot of deductions.

By treating you as a contractor, the Company does not have to pay any Social Security or Medicare taxes on you, nor does it have to track and pay your withheld taxes to the feds and to the state (if you have state income tax where you are). Needless to say, the IRS wants to collect those taxes, so it is interested in businesses that treat their employees as contractors and comes down on them.

If you want to investigate this, please see this IRS webpage.

Please note that if you question your employer in this regard, the employer is not likely to be happy, so be sure that you want to contest your status as a contractor.