You'll need to sign in or create an account to connect with an expert.
When you receive a form 1099-MISC with an amount in box 7 (Non-employee compensation), you are considered as self-employed and operating a business doing whatever activity you did to earn the money reported on the form 1099-MISC. You need to report that form 1099-MISC and file a Schedule C. Against the income, you can claim allowable and necessary expenses.
You do not own a business in the typical meaning of the term. As description of the business, just enter your activity (for example: electrician, driver, consultant, etc...). The address of the business is your personal address. You do not have an EIN (Employer Identification number) as you do not need one.
When you receive a form 1099-MISC with an amount in box 7 (Non-employee compensation), you are considered as self-employed and operating a business doing whatever activity you did to earn the money reported on the form 1099-MISC. You need to report that form 1099-MISC and file a Schedule C. Against the income, you can claim allowable and necessary expenses.
You do not own a business in the typical meaning of the term. As description of the business, just enter your activity (for example: electrician, driver, consultant, etc...). The address of the business is your personal address. You do not have an EIN (Employer Identification number) as you do not need one.
My wife is in the same category. She does not actually own the business. Her payer just chooses to pay her as 1099. This is the first year she has been paid this way, so we are struggling to understand the Schedule C form. The 1099-MISC information on the tax software was self-explanatory. It asks for payer's TIN, payer's name and address, and non-employee compensation. Ok, that's easy. Then came the Schedule C, which I'm told is required even though she doesn't in fact own the business. I've been instructed to put my wife's name and address as the name and address of the business on the Schedule C, which is clearly different from the payer's name and address on the 1040. The confusion gets deeper. She had no business-related expenses of any kind and therefore will not be reporting any. Is her "non employee compensation" considered profit? Is it considered her "business income?" Did she materially participate in the business? Is it cash or accrual? Did she start or acquire this business in 2019 (She doesn't own it so how could she have started or acquired it?) This is incredibly confusing. My WORD! If anyone could find the time and willingness to help, we would be forever grateful!
My form is 1099 R .they are asking me to put a Principal Business code.But i dont have any BUSINESS.
Check that you are entering the 1099-R in the right spot. You should not have a question about the Principal Business code for a 1099-R.
To enter form 1099-R:
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
kare2k13
Level 3
BSSE1
Level 1
mustang-deck
New Member
dbow58
Returning Member
PASSIVE FARMER
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.