My daughter is a junior and last year she worked doing school year and received a 1099-MISC, once I put that information in the system is asking her to do Section C.

[Bsch4477 · Accepted solution]

Unfortunately, an amount in box 7 of a 1099-misc signals the IRS that the recipient is self employed and owes self employment tax.  That in turn triggers a Sch C which reports self employment income and expenses.  Since this was a one time event, you could report that amount by entering it in box 3 which reports it as other income and avoids Sch C and self employment tax.  If you do this be aware that the IRS might question this and you would have to justify your declaring that amount as other income.

[ejhawk45]

Thanks for the help, but on her 1099-Misc the $966.77 is in Box 3 (Other Income) - Help ?

[Bsch4477]

Great.  Just enter it as reported in the 1099-misc.  You should not get a reference to Sch C.

[ejhawk45]

Does that mean that the software in not acting right?

[Bsch4477]

Get around it by doing this:
Start in Federal Taxes >> Wages & Income >> 1099-MISC and Other Common Income >> Income From Form 1099-MISC. Click "Start" work through the interview.
After entering the info from the 1099-MISC, continue until you see the question about this being connected to your main job, and say "no." Check only the box for 2017 income. Then answer that this was not an "intent to make a profit." Those three answers should classify this as "Other Income", which will appear on Line 21 on Form 1040.

[ejhawk45]

Thank you so much ...that worked!!