Skip to main content
February 4, 2023
Question

I’m trying to file my 1099-NEC. I’m a subcontractor through a business. When I’m entering my information it thinks it’s my business but it’s not. How do I fix this?

  • February 4, 2023
  • 1 reply
  • 0 views
It’s not my business, i’m an employee. But since it’s a self employment business I have to file a 1099-nec. My return is about $1500 lower because it thinks it’s my business & I don’t have deductions like the boss would.

1 reply

AliciaP1
February 4, 2023

The IRS defines an independent contractor or freelancer as self-employed.  You are also self-employed if you’re an individual who:

  • Is the sole proprietor of an unincorporated business
  • Works as an independent contractor, consultant, or freelancer
  • Is a member of a business partnership
  • Owns or is part of a limited liability company (LLC)
  • Earns income through investments
  • Earns income through rental property

You may not think of yourself as running a business, but you’re considered self-employed if you engage in business-like activities.  Business activities include any activity where you:

  • Intend to make a profit (even if you operate at a loss)
  • Have regular transactions or production of income
  • Make ongoing efforts to sustain, grow, or further the interests of your business

Even if you don’t receive a 1099-NEC, 1099-MISC, or 1099-K, you’re still responsible for reporting all your income and expenses from self-employment on your tax return.

 

Be sure to look at What self-employed expenses can I deduct? to maximize your tax savings because you are your boss too!

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"