If
your Form 1099-MISC shows an amount in Box 7 for nonemployee compensation and
it’s because you did work or other services for someone, based on IRS regulation, you DO now "have
a business!" If you
have received a 1099-MISC and entered it into TurboTax then it will prompt you
to do the TurboTax Self-Employed version. The IRS considers that if you receive a 1099-MISC with an amount in
Box 7 (nonemployee compensation) that you are self-employed.
If payment for services you provided is
listed in box 7 of Form 1099-MISC,
the payer is treating you as a self-employed worker, also referred to as an independent contractor.
- You don't necessarily have to
have a business for payments for your services to be reported on Form
1099-MISC. You may simply perform services as a non-employee.
- The payer has determined that
an employer-employee relationship doesn't exist in your case.
The
good thing about filing Schedule C is the ability to apply
any expenses you incurred while performing those services
