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posted Feb 13, 2021 10:09:11 AM

How can I fill out a 1099-MISC with a Box 7? I have tried filling out the 1099-MISC under Self Employment and Other Common Income, and each one does not have a Box 7?

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3 Replies
Expert Alumni
Feb 13, 2021 8:37:57 PM

Are you entering a 1099-MISC or 1099-NEC?

What is showing in your Box 7? 

Level 2
Feb 12, 2024 9:57:56 AM

Box 7 on my 1099-MISC says it is nonemployee compensation, and the help button says I may need to enter it under business income. But the instructions there ask for information about a self-owned business, which is not where this income comes from. 

Expert Alumni
Feb 12, 2024 10:26:39 AM

Non Employee compensation is intended to show that you earned income as a contractor.  In which case you do have a self-owned business even if it was just for this short period and one job.  

 

If the income you earned was earned as an intent to earn money and it was paid to you for doing a job (especially if is the same as your main job) then the income is self-employment income and you should continue to follow the instructions in order to create that self-employed business.  You will also be able to enter expenses that you had in order to earn the money on the 1099-MISC so that you don't pay taxes on money that you had to spend in order to earn it.

 

If the money on the 1099-MISC does not represent money paid to you for a job (for example - an award, income from a hobby, a one time favor to help someone out, jury duty etc.) then you don't need to create a business.  You also don't need to pay self-employment tax on the money.  As you go through entering the 1099-MISC into the system the 5th screen asks if this 'represented an intent to earn money'.  If you answer 'No' then you will just pay income tax on the money here.

 

@cbmarsh