turbo tax is acting as I'm an employer when I'm trying to enter my information in the specific section. I'm not and actual employer, I got paid for working contract negotiations.
Yes, you are an employer, you are considered self-employed, literally you employ yourself. According to IRS Publication 334, if you carry on an activity to make a profit, then you have a business. Performing a service such as negotiating contracts is a business.
You were paid as an independent contractor indicating you are self-employed and that has been reported to you and the IRS on a form 1099-NEC. You do not have to have an Employer Identification Number if you are the only employee. You can leave that box blank in TurboTax.
You will report that income and should deduct any ordinary and necessary expenses for that work in the “Wages and Income” tab under the “Self-employment” topic. This will generate a schedule C as part of your tax return.
For guidance on business expenses you should refer to IRS Publication 535.
1099NEC is self employment income.
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 are considered to have your own business for it. YOU are the business.
You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it. The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.
You use your own name 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 you put in your income and expenses if your net profit is $400 or more you will pay 15.3% for 2013 Self Employment tax in addition to your regular income tax. The Schedule SE will be automatically filled out for it.
You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.
How to enter income from Self Employment
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
Pulication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf
Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf
You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. 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.