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jmall32632
Level 2

I don't own a business, why is turbo tax is asking me for a Payer EIN?

Hello, I am having trouble filing my taxes as a 1099 worker this year, for the first time. One of my main questions is about the actual tax document itself. I don't "technically" own a business, I'm a personal shopper, so I am required to file a 1099-NEC this year. However, Turbo Tax is asking me for my Payer's EIN and Business address. Why? I don't own the personal shopping business, and they already have my personal home address? I want to make sure I am filing correctly, so I don't get in trouble with the IRS. Please Help!

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ThomasM125
Employee Tax Expert

I don't own a business, why is turbo tax is asking me for a Payer EIN?

I believe what you mean is that you received a form 1099-NEC reporting monies paid to you for products or services you provided to someone or a business. If so, the form 1099-NEC would have an employer identification number (EIN) on it. It would normally say Payer's TIN.

 

Your business address would be your home address if you don't rent an office or store.

 

Your are considered to be a business by the IRS if you receive a form 1099-NEC, that is why TurboTax is asking you questions about your business.

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4 Replies
ThomasM125
Employee Tax Expert

I don't own a business, why is turbo tax is asking me for a Payer EIN?

I believe what you mean is that you received a form 1099-NEC reporting monies paid to you for products or services you provided to someone or a business. If so, the form 1099-NEC would have an employer identification number (EIN) on it. It would normally say Payer's TIN.

 

Your business address would be your home address if you don't rent an office or store.

 

Your are considered to be a business by the IRS if you receive a form 1099-NEC, that is why TurboTax is asking you questions about your business.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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jmall32632
Level 2

I don't own a business, why is turbo tax is asking me for a Payer EIN?

So, you're saying that the payer's EIN = payer's TIN?

 

Edit: never mind, I looked it up. It is. Thank you for your reply.

BillM223
Employee Tax Expert

I don't own a business, why is turbo tax is asking me for a Payer EIN?

Yes. The Payer's TIN (Taxpayer Identification Number) is the personal shopping company's EIN, the Employer Identification Number. "Taxpayer" in this case can refer to any individual, partnership, corporation, or estate/trust.

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VolvoGirl
Level 15

I don't own a business, why is turbo tax is asking me for a Payer EIN?

Yes but that may not answer your question.  Did you get a 1099NEC or 1099Misc from someone?  If not then you do not fill one out.

 

Yes you are the owner of your own self employment business.  You are in business for yourself.  Use your own info.  The people or company that pays you is your customer or client.  You need to fill out schedule C for self employment business income.  You are considered to have your own business for it.  YOU are the business.

 

Just enter it as Other self employment income or as Cash or General income.  You don't need to get a 1099NEC or 1099K.  Even if you did you can enter all your income as Cash.  Only the total goes to schedule C.

 

For the future, you should use a program like Quicken or QuickBooks to track your income and expenses.  There is a QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....

http://quickbooks.intuit.com/self-employed

 

You will need to keep good records.  You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small and if you don't get the 1099NEC.

 

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, address 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 or 1099NEC 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.  

 

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

 

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

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