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I get a 1099-Misc for sales commissions though I'm not in business.

I am receiving a 1099 Misc for sales commissions from sales I made when in business years ago.  I sold my business and retired in 2010.  I am no longer in business of any kind.  When I put the info into Turbo Tax Deluxe it puts it into the business area.  What can I do to make this appear as just personal misc income?  I don't want to pay self-employment tax when I'm no longer in business!  Thanks!

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3 Replies
ColeenD3
Expert Alumni

I get a 1099-Misc for sales commissions though I'm not in business.

Commission income reported in Box 7 of a 1099-MISC is self-employment income for tax purposes, and is properly reported on Schedule C.

 

Commissions to employees are reported on the employee's W-2 form, in Box 1: Wages, tips, other compensation. Commissions to non-employees are reported on the 1099-MISC forms in Box 7, Non-employee Compensation.

 

I get a 1099-Misc for sales commissions though I'm not in business.

Thanks for the replies!  I went on and completed the return with the self-employment tax.  Not happy with that but it seems to be the only answer.

JohnW222
Expert Alumni

I get a 1099-Misc for sales commissions though I'm not in business.

You might look at "Other Income and Losses Included in Net Earnings From Self-Employment" in the IRS's Instructions for Schedule SE to see if this provides you with a relevant explanation.

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