Does a 1099-MISC mean I'm self-employed?
Whether you’re a sole proprietor, an independent contractor, a consultant or a freelancer, you’re probably getting some or all of your income reported on a 1099-MISC or 1099-K.
With our changing economy, more and more people are working for themselves instead of working for a traditional employer. This gives you the flexibility to work the way you want, but it also means the IRS considers you to be self-employed—or even a business.
When you’re paid this way, there’s no withholding taken out of your income, which means you’ll pay both self-employment tax as well as income tax.
But being self-employed enables you to have lots of write-offs as well, so make sure to enter all your expenses. This helps you reduce the taxes you might owe or increase your refund. We’ll help you get every possible tax break you deserve.
There are other reasons you may receive a 1099-MISC besides being self-employed
The 1099-MISC is a catchall tax form—the "MISC" in 1099-MISC stands for miscellaneous.
A non-work 1099-MISC would be for things like:
- Prize money
- Lawsuit settlements
- Research studies
Here ‘s how to enter a 1099-MISC that you may have received for another reason.