1099 Misc

Forum|Forum|6 years ago
March 24, 2020
2 replies
11 views

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.

1099

Critter

Level 15

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

Level 2

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.