, Answering FAQ'sTurboTax Employee
If you received a Form 1099-MISC with a number in Box 7 (Nonemployee Compensation), it's because the issuer didn't consider you an employee and therefore didn't withhold taxes.
Nonemployee compensation is considered self-employment income, which is taxed at a higher rate. You don't necessarily have to own a business to be treated as a self-employed worker. Simply performing services as a non-employee can be enough to create this tax treatment.
To enter your 1099-MISC in TurboTax, do the following:
- Click the Federal Taxes tab (or the Personal tab in the Home & Business edition) and then select Wages & Income.
- On the Your 2012 Income Summary screen, scroll down to the Other Common Income section.
- Click the Start or Update button to the right of Income from Form 1099-MISC.