If your Form 1099-MISC shows an amount in Box 7 for nonemployee compensation and it’s because you did consulting work or other services for someone, based on IRS regulation, you DO now "have a business!" and the IRS considers you as self-employed. You’re in the business of consulting, and you have to file Schedule C to report that 1099-MISC income. The Schedule C is located in TurboTax Self-Employed version. This is a requirement, not an option!
The good thing about filing Schedule C is the ability to apply any expenses you incurred while performing those services.
If you have received a 1099-MISC and entered it into TurboTax then it will prompt you to do the TurboTax Self-Employed version. If payment for services you provided is listed in box 7 of Form 1099-MISC, the payer is treating you as a self-employed worker, also referred to as an independent contractor.
- You don't necessarily have to have a business for payments for your services to be reported on Form 1099-MISC. You may simply perform services as a non-employee.
- The payer has determined that an employer-employee relationship doesn't exist in your case.