I was issued a 1099-MISC in addition to W-2 from the same employer. I stopped working for that employer, and according to payroll, 1099-MISC was meant to cover my pay in the "final paycheck waiting period" from which tax was not withheld, which was because my final check was not processed in time based on my state's regulations. I would think this is for income for my regular work of my full-time employment just like what is reported on W-2.
After I entered it on "Form 1099-MISC" (the amount is in Box 3 of Other income) under "Other Common Income", an item "Self-employment income and expenses" appeared for me to review in which I am asked to fill in information that looks odd to me, as if I were self-employed. Since I was not really self-employed and the income reported on 1099-MISC was for work performed during my full-time employment as mentioned, what should I do to proceed?
BTW, I am a resident alien and my nonimmigrant status does not allow real self-employment. Therefore, I would like to handle this cautiously to avoid troubles later on.
In order to report the 1099-MISC and not create a Schedule C, please follow these steps:
7. Continue through the rest of the interview screens. The income will appear as Other Income.
@HelenC12 I am a nonimmigrant but am considered a resident alien for tax purposes. Therefore, I should file 1040. Your advice is greatly appreciated.
In order to report the 1099-MISC and not create a Schedule C, please follow these steps:
7. Continue through the rest of the interview screens. The income will appear as Other Income.
@Irene2805 Thank you for the detailed instructions. When I followed them, Schedule C was not created. However, to clarify, is that the right thing to do based on my situation? The answers to the questions do not sound like reality:
I would like to make sure that the steps instructed are not just meant as a workaround to not create a Schedule C, but also legitimate in terms of tax compliance.
I understand your concern. The questions are not ones asked by the IRS. They were devised by the TurboTax programmers to get the program to put numbers in the right place. In your case, a Schedule C should not be created, so that's why I suggested the answers I did.