TurboTax FAQ
TurboTax FAQ
294 people found this useful

Why is there an amount in Box 7 (Nonemployee Comp) on my 1099-MISC?

If your 1099-MISC has income in Box 7 (Non-employee Compensation), the payer is treating it as self-employment income, which means it's subject to the self-employment tax.

You don't necessarily have to own a business to be considered self-employed for tax purposes. You are simply being treated as not an employee.

Examples of typical Box 7 income includes:

  • Payment received as a consultant, contractor, freelancer, or other independent worker;
  • Commissions;
  • Executor or trustee fees;
  • Fees for serving as company director;
  • Value of noncash goods received for services performed;
  • Witness or expert witness fees.

That said, sometimes income accidentally gets reported in Box 7 when it really belongs in a different box, for example:

  • Employer-provided benefits such as group-term life insurance, mileage and automobile allowances, etc. (these can go in Box 3);
  • Golden parachute payments (these belong in Box 13);
  • Bonuses or severance pay from your employer (put these in Box 3 instead).

Related Information: