Am retired military drawing retirement, disability&SS. Did some W-2 work in U.S. & 5.5 months 1099-Misc work in Canada. How do I treat this income? Do not own a business.

[csabobevans]

1099-MISC includes hourly, per diem, M/IE, gas reembursement, items purchased for the project.  Do I just owe tax on hourly income and delete all per diem, M/IE, gas, etc from the total non-employment compensation?

[PhyllisG · Accepted solution]

If the amount was reported in box 7 of the Form 1099-MISC then you will have to report the total income on the Form 1040 Schedule C or Schedule C-EZ. TurboTax will determine the applicable form once you begin entering your information. 

You are considered an independent contractor when box 7 of the Form 1099-MISC has an amount; therefore, you are able to deduct any business related.  You will report your expenses (e.g., gas, supplies for project) in Part 11 of the Schedule C as a deduction.

To begin entering your information into TurboTax, do the following

1. Type Schedule C in Find
2. Click the Jump to schedule c link
3. Navigate through the program to begin entering your income and expenses

You income will appear on line 12 of the Form 1040 Schedule 1.