Entering income if filing for SS8

[gracecazaz]

Hi there- I’m using TurboTax Free File! For one job this year I was incorrectly given a 1099MISC. I’ve already filed an SS8 (still waiting for a determination) and gone through the steps of getting a form 8919 added to my return for this job - which seems like it greatly reduced the taxes I have to pay. 

However - do I need to add that income into the the section “Business Income and Expenses (Sc-C)”? If I do - - it greatly increases the taxes that TurboTax says I owe, even though it already reduced that amount when I entered into the initial “Income from 1099 MISC” section?

I don’t know what I would report this as business income when I am not determined as a business, and as a result pay thousands more in taxes! 

[JotikaT2]

It depends.

The way you report the 1099-MISC will depend upon whether you earned the income as part of a business or not.  

If you are reporting this income as self-employment income (meaning you are running a business with the intent to make a profit), you will do the following in the Federal interview section: 

1. Select Income & Expenses 
2. Select Self-employment income and expenses 
3. Proceed through the screens to enter your information 
4. When you see the following for income, make sure to select Other self-employed income. Includes 1099-K, cash, and checks. 

If it is not from self-employment, you would enter the information as follows: 

1. Select Income & Expenses 
2. Go to the  All Income section and select Less Common Income 
3. Select Miscellaneous Income

You will then select Other reportable income to enter your income from your 1099-Misc.  Be sure to mark that it was not earned as part of business.