SSDI & non employment compensation

[maryboyle]

I need help figuring out where to put my non employment compensation 

and how that affects SSDI what line does Amazon VINE  non employment compensation  go on ?

I have no problem with paying the taxes on the products I receive I just don’t want SSDI thinking it’s actually a job when it is not . 

[VolvoGirl]

Well it is taxed as a job and is earned income.  It is self employment income.  

1099NEC is self employment income.

You are the owner of your own self employment business.  You are in business for yourself.  Use your own info.  The people or company that pays you is your customer or client.  You are considered to have your own business for it.  YOU are the business.

You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it.  The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

You use your own name and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all  income is at risk.  After you put in your income and expenses  if your net profit is $400 or more you will pay 15.3% for 2013  Self Employment tax in addition to your regular income tax.  The Schedule SE will be automatically filled out for it.

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Where to enter expenses

https://ttlc.intuit.com/questions/3636848-where-do-i-enter-my-self-employment-business-expenses-like...

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

I don’t know how that affects your SSDI but it might affect regular Social Security.  

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

[maryboyle]

Wow that’s  sounds really complicated how will I know if the person last yr ( AARP tax preparer did it right ?) I don’t want the IRS coming after me if he didn’t put the $1600 for the yr in the right box 

[maryboyle]

• IWow that’s  sounds really complicated how will I know if the person last yr ( AARP tax preparer did it right ?) I don’t want the IRS coming after me if he didn’t put the $1600 for the yr in the right box 

in reading your link as far as payment go  I just put products ? No cash , money, ck’s etc. Are involved in the income 

[VolvoGirl]

You need a copy of last year return.  What line is it on the 1040 and schedule 1?  I don’t know how that Amazon program works if you got products instead of cash.  Maybe you don’t need to report it as self employment income.  Hopefully someone else will reply.  

[maryboyle]

So I did report last yr because it was a figure on a 1099NEC 

what if you have another 1099 for self employment is their another box ? Or do you just add the VINE Amt ( which I think stinks because their is no payment)

do you add the totals from the 2 forms or are their separate boxes for each total from each NEC ? 

Thank  you for your help 

[maryboyle]

So I did report last yr because it was a figure on a 1099NEC 

what if you have another 1099 for self employment is their another box ? Or do you just add the VINE Amt ( which I think stinks because their is no payment)

do you add the totals from the 2 forms or are their separate boxes for each total from each NEC ? Thank  you for your help 

[maryboyle]

What’s a schedule C? I had a tax preparer do my taxes , I don’t know what a schedule C looks like so I have no idea if he used 1 

[VolvoGirl]

Here is a blank Schedule C.  The Net Profit or Loss on line 31 goes to federal 1040 Schedule 1 line 3 which ends up on 1040 line 8.

https://www.irs.gov/pub/irs-pdf/f1040sc.pdf 

[maryboyle]

Thank you since he did it all online I’ll have to look at what he printed out but I do remember seeing a figure on Line. 8

now for next yr I do have Amazon vine 

( but then that’s it . It’s to confusing )

but I am going a work a real self employed job . Will  that go on a separate  line ? Or do you add vine and self employ together ?  

[VolvoGirl]

It will go on another schedule C but the combined Net Profit or Loss goes to 1040 and your Schedule SE for Self Employment Tax if you have a Net Profit.