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Received 1099 misc. Has amount in box 7..but also states non employee but he was..they didnt take out taxes...how to file this?

 
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Kat
Level 15
Level 15

Received 1099 misc. Has amount in box 7..but also states non employee but he was..they didnt take out taxes...how to file this?

If one receives a 1099-MISC with income reported in Box 7 (Nonemployee compensation), this indicates that the recipient is self-employed.  That doesn't necessarily mean that the recipient owns his own business...only that he is being paid as an independent contractor.

Sometimes employers pay in this fashion to avoid paying their portion (1/2) of the employee's Medicare and Social Security taxes.  T"he IRS does have "rules" for defining who is an employee or not.  If the recipient of the 1099 is required to be at a certain place at specific times, this typically indicates that they should be classified as an "employee".  This may be something that "he" would want to discuss with the employer.

Nonetheless, to enter this 1099-MISC into TurboTax, see the information below.  This TurboTax FAQ also gives more information about this type of income.

"Does a 1099-MISC mean that I'm self-employed?"

https://ttlc.intuit.com/replies/4770969

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***
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