Hello, I am confused beyond all means. I had an interview with a potential employer. As part of that interview, they assigned me a paid project for $2400.00. I completed that project and was given a 1099-misc form. Now that I'm filing my taxes, I'm absolutely confused as how to file this. I put in the information from the 1099-misc form they gave me (which is just the amount in box 7, the rest are blank), but when I hit submit on my taxes I get this message:
"Form 1099-MISC worksheet (Cruview LLC): A link to schedule C, schedule F, Form 8919 (Wages) or Other Income Statement must be entered. To associate this amount with the proper tax form double-click on the field provided or check the box of the form you want to link this amount to". There are no other boxes or fields with this message so I don't know what they're talking about. Please help, I just want to hit submit and be done with this. Thank you!
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When you did that job you were considered an independent contractor so you have to treat that payment as if you had a business. Complete Sch C to report the income and any related expenses. You will owe self employment tax on that income.
It is the form used if you are self employed.
Is there a way to submit this through TurboTax or is this something I just have to print out and mail? I have the Deluxe package for fed+state
Deluxe does have Sch C.
As you start to enter your the self-employment income and expenses for the Schedule C the TurboTax program will recommend that you upgrade to the Home & Business edition. This is a recommendation only, it is Not a requirement. You can just click on the button to continue with Deluxe.
first delete the 1099-MISC.
then open schedule C (eg sole proprietor) and enter your own name in the business name.
then re-enter the 1099-MISC and you will get the opportunity to attach the 1099-MISC to Schedule C.
after that, you may deduct any supplies, materials or other paraphernalia needed to complete the project.
You may also open a SEP IRA based on your net SE income, after deductions.
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