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bruce1956
New Member

1099 Misc

My wife and I add to our income by working at swim meets as officials.  We are paid with a 1099 MISC and the sum is in box 7.  Turbo Tax is identifying us as a business and taxing us accordingly asking questions about employees, expenses, overhead, etc.  Last year this was not an issue but we made about 1/2 as much.  Could the increase in $'s be the reason?  We are still not a business.  We file jointly.

3 Replies
Critter
Level 15

1099 Misc

 
Critter
Level 15

1099 Misc

If you are new to being self employed, are not incorporated or in a partnership  and  are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

 

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

Baronmogul
New Member

1099 Misc

Employees are paid and issued W-2's and have taxes withheld

Self employed individuals are paid and given a 1099 Misc. There usually are no withholdings and you are required to file a schedule C if you are a sole proprietor.  This income is also subject to self employment taxes (social security, etc.) in addition to income tax.

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