1099-Misc Confusion

Forum|Forum|6 years ago
February 7, 2020
1 reply
65 views

I am a consultant. I am not self employed nor an employee. I am not considered a independent contractor. I only received money as a consultant/non-employee. I got a 1099-misc, entered all the data in turbotax and am lost. I am asked questions like report any gains or losses? I guess a gain might be what I earned but I cannot help but feel that the 1099-Misc is not the correct form. What is right, next, etc. Thanks.

TurboTax PLUS Online

Best answer by LeonardS

When you work as a consultant, you are considered a self-employed individual for income reporting purposes. If you earn more than $600 in a year, the client has to provide you with a Form 1099-MISC, the IRS is also provided a copy.

You will enter all your Form 1099-MISC income and expenses related to your consulting business on Schedule C Profit or Loss from Business.

LeonardSAnswer

Level 14

You will enter all your Form 1099-MISC income and expenses related to your consulting business on Schedule C Profit or Loss from Business.

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Steve M

Level 2

I received a 1099-misc for being a volunteer Fireman. The amount was $1765 which is over the $600 but I'm not self employeed. This $$ is what is received for making medical and fire calls, is there a way around this tax since I'm not a business ?

KrisD15

Level 15

Yes, you can eliminate the Self-Employment tax, but you can't write off any expenses.

Click Federal

Click Wages & Income

Click “See All Income” if needed

Scroll down (PAST SELF-EMPLOYMENT) to “Other Common Income”

Click “Show more”

Scroll down to “Form 1099-MISC”

Click Start

Enter the 1099-MISC and Continue

On the “Describe the reason for this 1099-MISC” screen enter something like “Volunteer Firefighter” and Continue

Select “None of these apply” and Continue

Select “No, it didn’t involve work like main job” and continue through the interview selecting the appropriate answers for a one-time payment to cover expenses and not job related work

Report that this was the first year you received this 1099-MISC

The amount from the 1099-MISC will be reported as Other income on the 1040 line 7a, not as Self-employment

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