I received a 1099-misc form working for my church over the summer, yet it says that I am self-employed. Do I have to file as self-employed, even though my church paid me?

jonathanfm7 · ‎June 6, 2019

I believe I was employed by my church, and that is where my confusion stems from. Why do I file as self-employed if my church employed me?

Hal_Al · ‎June 6, 2019

If the church sent you a form 1099-Misc, with the amount of your pay in box 7, they do not consider you to be an employee but "contract labor"

Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-MISC); The IRS considers anything in box 7 of 1099-MISC to be self employment income. Enter the 1099-Misc income, at Other Common income / income from a 1099-MISC . TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $400. These types of payments are frequently done this way. Your "employer" is not the only one.

The IRS also considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income.

You may have to upgrade to the Self Employment version of TT. If you have no expenses to deduct, there's a chance you may be able to use TT Deluxe or Premier. Enter your income at the 1099-Misc screen (even if you didn't get a 1099-misc).

In TurboTax (TT), enter at:
- Federal Taxes tab

- Wages & Income

-Scroll down to:

- Other Common Income

-Income from Form 1099-Misc

______________________________________________________________________________________________________

TurboTax also has another free product called the FREEDOM Edition (not to be confused with the regular Free Edition). It has free Federal preparation and free State preparation. There is no efiling fee. It is not available after October 15

The FREEDOM Edition can handle a 1099-MISC.

The Freedom Edition is more fully-featured than the regular Free Edition. The Freedom Edition can prepare Schedule A, C, D, E, and F that the Free Edition cannot. It will prepare a Form 1040 or 1040A or 1040EZ.

For Freedom Edition a user needs to meet only ONE of these qualifications:

AGI of $33,000 or less
or active duty military (including Reservists and National Guard) with a military-issued W-2 and a 2017 AGI of $66,000 or less
or eligible for the Earned Income Credit (EIC aka EITC).

The FREEDOM Edition is located at:
https://turbotax.intuit.com/taxfreedom

How to switch and start over in Freedom Edition
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition

View solution in original post

Hal_Al · ‎June 6, 2019

If the church sent you a form 1099-Misc, with the amount of your pay in box 7, they do not consider you to be an employee but "contract labor"

Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-MISC); The IRS considers anything in box 7 of 1099-MISC to be self employment income. Enter the 1099-Misc income, at Other Common income / income from a 1099-MISC . TurboTax (TT) will complete Schedule C or C-EZ for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $400. These types of payments are frequently done this way. Your "employer" is not the only one.

The IRS also considers undocumented cash income (no W-2 or 1099-MISC), for work performed, to be self employment income.

You may have to upgrade to the Self Employment version of TT. If you have no expenses to deduct, there's a chance you may be able to use TT Deluxe or Premier. Enter your income at the 1099-Misc screen (even if you didn't get a 1099-misc).

In TurboTax (TT), enter at:
- Federal Taxes tab

- Wages & Income

-Scroll down to:

- Other Common Income

-Income from Form 1099-Misc

______________________________________________________________________________________________________

TurboTax also has another free product called the FREEDOM Edition (not to be confused with the regular Free Edition). It has free Federal preparation and free State preparation. There is no efiling fee. It is not available after October 15

The FREEDOM Edition can handle a 1099-MISC.

The Freedom Edition is more fully-featured than the regular Free Edition. The Freedom Edition can prepare Schedule A, C, D, E, and F that the Free Edition cannot. It will prepare a Form 1040 or 1040A or 1040EZ.

For Freedom Edition a user needs to meet only ONE of these qualifications:

AGI of $33,000 or less
or active duty military (including Reservists and National Guard) with a military-issued W-2 and a 2017 AGI of $66,000 or less
or eligible for the Earned Income Credit (EIC aka EITC).

The FREEDOM Edition is located at:
https://turbotax.intuit.com/taxfreedom

How to switch and start over in Freedom Edition
https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-freedom-edition

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I received a 1099-misc form working for my church over the summer, yet it says that I am self-employed. Do I have to file as self-employed, even though my church paid me?