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I received a 1099-MISC from a part time, side job. My income is listed as non-employers compensation. I'm being directed to claim this as self employment, why?

 
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2 Replies

I received a 1099-MISC from a part time, side job. My income is listed as non-employers compensation. I'm being directed to claim this as self employment, why?

Yes, That is self employment income.  You were working for yourself and not as an employee.  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
https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  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.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.

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
LindaA
Expert Alumni

I received a 1099-MISC from a part time, side job. My income is listed as non-employers compensation. I'm being directed to claim this as self employment, why?

You were treated as a contractor for your side job, not as an employee. When you're paid this way, no taxes are withheld from your earnings and they are reported on a 1099-MISC (instead of a W-2). As a result, the IRS treats you as self-employed, and you'll need to pay both income tax and self-employment tax (Social Security and Medicare taxes). 


Please see the FAQs below for more information.

Does a 1099-MISC mean I'm self-employed?  https://ttlc.intuit.com/replies/4770969

What's different now that I'm self-employed?  https://ttlc.intuit.com/replies/5535615
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