My travel agency sent 1099 box 7 is less than $600 (commissions).. do I report it & why sch c. I don't own my own agency? I'm a home-based agent

gb2046 · ‎June 3, 2019

Why prepare a schedule c when I don't own a business ?

TomD8 · ‎June 3, 2019

If the agency sent you a 1099-MISC instead of a W-2, they regard you as an independent contractor, not an employee. Independent contractor income is considered self-employment income by the IRS, and is correctly reported on Schedule C or C-EZ.

As far as the IRS is concerned, you are a self-employed "business." On Schedule C, enter your own name and address as the business name and address.

If the 1099-MISC is your only income for the year, you must file a tax return if the net income is $400 or more.

If you have other income requiring a tax return, you must include the 1099-MISC. It is not tax-free.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

View solution in original post

TomD8 · ‎June 3, 2019

If the agency sent you a 1099-MISC instead of a W-2, they regard you as an independent contractor, not an employee. Independent contractor income is considered self-employment income by the IRS, and is correctly reported on Schedule C or C-EZ.

As far as the IRS is concerned, you are a self-employed "business." On Schedule C, enter your own name and address as the business name and address.

If the 1099-MISC is your only income for the year, you must file a tax return if the net income is $400 or more.

If you have other income requiring a tax return, you must include the 1099-MISC. It is not tax-free.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

My travel agency sent 1099 box 7 is less than $600 (commissions).. do I report it & why sch c. I don't own my own agency? I'm a home-based agent