If your employer does not send you a 1099-MISC, but you should have received one, you will need to enter this information into the 1099-MISC selection (which will generate a Schedule C - related to Self-employment income)
If you don't get a 1099-MISC form, you still must report any
money you received for work, royalties or services, whether it's for cutting
grass or selling a manuscript. The IRS wants to know about all your income. You
list your miscellaneous income on a Form 1040 Schedule C, Profit and Loss from
Business. Add smaller payments to money that was reported on a 1099-MISC and put
the total on the "gross receipts" line. You just have to note the
total, not list where it came from.
Include all your miscellaneous income to calculate your Profit
and Loss from Business. Add up everything you received, with or without a 1099,
and subtract your expenses to get a net profit. Report that profit on line 12
of your Form 1040. You'll also have to fill out a self-employment tax form if
your total miscellaneous income is more than $400.
You're not likely to get caught by the IRS if you don't report
$200 or $300 you got in cash for some work, but if you're ever audited and do
get caught, you'll face serious penalties. Any payment you got with a check but
wasn't reported to the IRS on a 1099 still can leave a paper trail for the IRS,
if the payer claims a deduction for paying you. It's best to be honest with the
IRS even if it costs you a buck or two.
To complete our tax return you can choose TurboTax Home & Business (desktop version) https://turbotax.intuit.com/personal-taxes/cd-download/home-and-business.jsp or TurboTax Self-Employed (online version) https://turbotax.intuit.com/personal-taxes/online/self-employed.jsp
Below is the"Missing 1099-MISC" workaround in TurboTax:
ONLY do the following if you will NOT be receiving a FORM 1099-MISC but you need to report cash/income as Self-employment Income:
To enter this transaction in TurboTax Online or Desktop, please follow these steps:
- To enter this transaction in TurboTax, log into your tax return and type "1099-MISC" in the search bar then select "jump to 1099-MISC". TurboTax will guide you in entering this information
- Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose what I work on” (or "jump to full list")
- Scroll down the screen until to come to the section “1099-MISC and Other Common Income ” (show more)
- Choose “Income from Form 1099-MISC"
- Enter the employer name and an amount in box 7 (screenshot #1) continue
- Enter type of work (ex. "Construction") continue
- Work through the questions - If main job - yes (if "no" - then yes to intent to make money)
- After the screen about being able to take expenses, you will be asked "Did you get another 1099-MISC for "job"?
- Answer "no" (screenshot #2)
- Did you get cash or other income for "job"?
- you can enter this additional cash related to this job here (screenshot #3)
- Next you will be asked to input expenses related to his work. Finish this select
Important - You now need to go back and edit your 1099-MISC input and remove the box 7 information (if you do not, it will double your income from this job (screenshot #1 - remove box 7 info) Once this information is removed, you will not be able to review your inputs. If you need to review, put an amount in box 7 to review but make sure that you remove it again or it wll be included on your Schedule C
- To review what amount is being reported on Schedule C, log into your return, go to My account>tools> preview Tax summary>preview 1040. Schedule C amount will show on line 12
