1099 misc and schedule c

[JanGarner]

My daughter received a 1099 misc from her employer, while trying to file her taxes it redirects me to fill out a schedule c and ask for information pertaining to my daughters business, the problem is she has NO business. How do I correct this?

[BillM223]

In the eyes of the IRS, your daughter's business was providing service to her "employer".

If this was earned income (as opposed to something like contest winnings), then your daughter must file a Schedule C and pay self-employment taxes.

Answer the business questions as best you can, and keep on going.

[Opus 17]

If your daughter received a 1099-MISC with non-employee compensation in box 7, that means that the business is treating her as an independent contractor and not an employee.  As an independent contractor, she is essentially a small one person business performing business services for clients. She may only have one client last year, but that is the technical nature of the relationship. She could work for other clients. She is required to file a schedule C, to report and keep track of all of her business income and expenses, and pay income tax and self-employment tax on the net profit from her business.

if you think she was missed classified and was actually in an employee-employer relationship and not a client-contractor relationship, there is a form you can file that will start an investigation of the employer and the IRS will make an official determination of whether she was an employee or a contractor.