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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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.
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.
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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