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June 1, 2019
Question

I have a 1099-MISC for writing entries in a textbook (I am a university professor). It seem related to my job, but I am not self employed.

  • June 1, 2019
  • 1 reply
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1) Would this activity count as a "bonus, prize, award" from a payer that is not my employer? 

2) Would this activity count as "work like my main job or it was my main job"? I do not plan to write sections for textbooks regularly. 

3) Answering no to the first question, and yes to the second categorizes this income as business income and subject to self employment taxes. Is this correct? I do not own a business, and it seems odd to describe myself as self employed for a one-time payment. 

4) Alternatively, if the activity does "not involve work like my main job" would it constitute "an intent to earn money"?

1 reply

June 1, 2019

The box completed on the the Form 1099-MISC will determine if you were considered self-employed. 

If Box 7 has an amount in it, then you are considered an independent contractor. You will need to prepare a Form 1040 Schedule C or C-EZ and deduct any business related expenses, no matter how minimal, against your income. You may also be subject to self-employment tax if your net Schedule C income is $400 or more.

To open the Schedule C in a TurboTax CD/Download version do the following

  1. Type Schedule C in Find
  2. Click the Jump to 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.

If Box 3 of the Form 1099-MISC has an amount, then you will report the amount has Other Income, and you will not be subject to the self-employment tax.

To enter the information in TurboTax due the following:

  1. Select the Personal Income (or Wages and Income) tab.
  2. Click the I'll chose what I work on button
  3. Scroll down to Other Common Income
  4. Select Form 1099 Misc. then click Start
  5. Begin navigating through the program.
  6. Enter your Form 1099-MISC as exactly shown on your statement
  7. Enter the reason when prompted
  8. Any questions regarding job related work, earned income, or not related to your situation, Select No.
  9. Enter the year of the damage
  10. Enter the year the Form 1099-MISC was received
  11. Select no other year when prompted, then Continue
  12. At the end of the interview, click Done

The amount will appear on Line 21 of the Form 1040 Schedule 1.