I have a 1099-MISC form which is for my last payment from a company. It was connected to schedule C. But this income is not from personal business. What should I do?

[ToddL99]

Please clarify - By "last payment", what do you mean? Was this payment received in lieu of a final paycheck from your former employer?

[jrx11]

I asked my former employer. They said "

the 1099- Misc form is sent to former employees who received "Final Pay - Waiting" penalty wages because taxes were not withheld from those wages".

[ToddL99]

This may not income from a business of yours, but it will have to be reported on Schedule C-  this is the only way for the program to calculate and add employment taxes that should have been withheld  & paid by your employer.

The former employer's description indicates this payment was for "wage income", and that taxes were not withheld.

Schedule C and Schedule SE will calculate the income and employment taxes that are owed on this payment.

(Paying your final wages by 1099-MISC allowed your employer to avoid paying the employer's share of your SS and Medicare. It is possible the employer paid you more than your regular wage rate to make up for this).

[jrx11]

Thank you for your reply. However, in the smart check, they asked me to enter information of my business (like address and business name) I don't have the information since this income came from my former employer not my own business. Can I just ignore it. If not, what should I enter? Thank you.

[ToddL99]

Enter your name and address - in this case, "you" are the business.

Don't worry, this is just a method of reporting your income. The IRS is not concerned with the details of "your business" other than that you report your taxable income.