That is self employment/independent contractor income to you too. You will have to upgrade to the Self Employed version to enter it.
You need to report all your income even if you don't get a 1099Misc. You use your own records. You are considered self employed and have to fill out a schedule C for business income. You use your own name and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is At Risk.
After it asks if you received any 1099Misc it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records. Just go through the interview and answer the questions. Then you will enter your expenses.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040. The SE tax is already included in your tax due or reduced your refund. It is on the 1040 line 57. The SE tax is in addition to your regular income tax on the net profit.
Here is some IRS reading material……
IRS information on Self Employment
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center Pulication 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 OR There is also The Turbo Tax Freedom website which is free for federal and state. And has more forms than the Federal Free Edition, like the full 1040 return and Schedules A, B, C , D, E, F, EIC, H, K-1, SE, etc.
To qualify for the Tax Freedom website you just need to meet one of these 3 things
AGI $31,000 or less
Active duty military with AGI of $62,000 or less
OR qualify for EIC (earned income credit.)
In order to use the Tax Freedom Edition, you have to start it at a special website which will open in January:
http://turbotax.intuit.com/taxfreedom/
