I have a $1000 in 1099 income. I have no business related expenses. All of my other income is from a standard W2. Why do I need to use the "self-employed" version?

[JulieH1 · Accepted solution]

I see you are trying to use the Free Edition. TurboTax Free edition does not handle the 1099-Misc form.  You say 1099, but do not give me the letters after it, but I assume since you mention business then you are talking about a 1099-Misc.  If the 1099 is not related to your business or trade, then you could use Deluxe and add the 1099-Misc under "other income.".

If the 1099-Misc income is related to a side job or work of any kind, the IRS assumes you are self-employed and requires a Schedule C which is why we recommend the self-employed version if the 1099-Misc has to do with "work."  The IRS is very picky about the 1099-Misc because if you are self-employed and someone sent you a Misc form then the IRS thinks you need to pay self-employment tax on that money.  Only TurboTax self-employed could guide you on those IRS guidelines.

Nonetheless, if the 1099 you received is a 1099-Misc and is not from work then you can use the online Deluxe version or ask the sender of the form to re-do it and not classify it as a 1099-Misc and then you could use Free.