Does a 1099-Misc box 3 (other income) cause a selfemployed (SE) tax to be imposed a require a schedule C ????

[edhicks580]

Box 7 and most others cause SE tax  I am finding a 57% tax applied to income on a 1099-Misc.  My net income is barely into the 25% rate

[ChelsiE2 · Accepted solution]

This income will be subject to Self Employment Tax if this income is earned in a similar capacity to your regular line of work and you expect to receive it in the future.

If this is income that has nothing to do with your normal job and that was a one time situation, then you do not have to pay Self Employment Tax on it.

When you enter Form 1099-MISC into TurboTax, the software will ask you questions regarding these two issues.

[smfw29a2]

On my Windows 10 desktop with TurboTax Deluxe if the 1099-MISC is not work related and you select "Does Not Apply" as the classification TurboTax will create a schedule C, duplicate the amount and show it on line 12 of the federal return not line 21, Other Income.

[latoyanfam]

do you have to pay taxes on this money