I received a 1099-Misc for work that I did abroad for my currently employer. Turbo tax is treating this as self-employment but it's not.

[cassandravcuring]

I received a 1099-Misc for work that I did abroad for my currently employer. Turbotax is treating this as self-employment but it was not. They simply paid me after the job was done and it was reported on the 1099-W.  

Does this need to be treated as self-employment for tax purposes? I am asking because it’s having me fill out a profit & loss form which does not apply in my case.

[Anita01]

Why did they not include it on your W-2?  A 1099-MISC with an amount in Box 7 is for work done by independent contractors.

[cassandravcuring]

I have no idea why. The work was performed for the same company ( us government,  whom i am employed by ) while i was on a temporary duty assignment.  They paid me months after i was done with the temporary assignment,  but it was all work done for the same employer; I'm not a contractor.

[Anita01]

You will have to file this income as Self-Employment income since that's how your employer chose to report it to you.  They apparently considered this to be a private contracting job. 

The point of reporting it this way is not really to declare a business you own, although the IRS would consider it as selling your services to an organization.  The point is that, the Schedule C, on which this income is reported, allows for the calculation of social security and medicare tax on this income (called Self-Employment tax).  

Just answer the questions asked as simply as possible, such as you use cash reporting, the business is the same as your name and address, you don't need inventory, etc.. 

If you don't report it here and pay SE tax, you will receive a letter from the IRS billing you for SE tax plus interest.

[cassandravcuring]

Thanks - reported the income as self employment and I listed the proprietor as myself but the business/business address as the actual business I was working for. I also put reporting method as "other", N/A so hopefully no issues but we will see.  The income was reported at least which I think is the main issue since no taxes had been taken out?

[Anita01]

Yes, the main issue is paying both regular income tax and SE tax.  At least this way, you will get credit for this income on your social security history when you go to collect benefits