1099-Misc entered is making me file as Self Employed?

[Josh201]

Most of my income were W-2's, but I received one 1099-Misc and turbo tax automatically switched me to "filing as self employed" which would increase my cost to file by a couple hundred dollars.  Can't I just file as an individual with one 1099-Misc?

Thank you for any guidance you can offer me.

Josh H.

[MercieD1 · Accepted solution]

It all depends on the source of income.

If you received the 1099-Misc for some work that you did (you should have received a 1099-NEC as opposed to a 1099-Misc), then it would be considered self employment.  In some cases, however, 1099-MISC can be issued for a number of things that are not work related.  In that case, it can be entered as Other Income.

[Josh201]

MerciD1,

It turns out I had two 1099's, one was definitely "other" and one was a 1099-NEC.  It was for helping a friend on a job of his and then in January of 2023 he mailed me a 1099-NEC.  So this is why it seems turbo tax is having me file as self employed because of that one 1099-NEC? That can't be listed as "other income"?

Thank you,

Josh

[VolvoGirl]

A 1099NEC is for self employment income.  Yes you are the owner of your own self employment business.  You are in business for yourself.  Use your own info.  The people or company that pays you is your customer or client.  You need to fill out schedule C for self employment business income.  You are considered to have your own business for it.  YOU are the business.

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  Here's a Schedule C  https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version or use any of the Desktop CD/Download programs.

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

[Josh201]

I am still questioning this.  So the problem is all of my income except $1000 are from a W-2 (not self employed).  One job where I helped someone who sent me a 1099-NEC makes me self-employed and the cost to file with Turbo Tax is a couple hundred more... and I don't have any self employed stuff to write off?

I'm trying to file as an individual and not self employed? Any advice?

Thanks,

Josh

[VolvoGirl · Accepted solution]

As I said above if you don't have any expenses to write off you can use Deluxe or Premier to enter a 1099NEC for self employment.  Just start in Deluxe and don't upgrade.