Question

1099-MISC but not a business

Forum|Forum|5 years ago
April 11, 2021
1 reply
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Hello,

I received a 1099-MISC form my employer for less than $2000. This was my first paycheck and to my knowledge should have been reported on my W-2, but instead I have the 1099 form. Turbotax won't let me enter it without requiring a Schedule C form be completed, but I don't have this information since I do NOT have a business and this was just a regular paycheck. How do I enter this without filling out the Schedule C?

TurboTax Free Edition Online

D

DavidD66

You are correct that your employer should have included this on your W-2; however, because they didn't you will have to report it using Schedule C and pay self-employment tax on the earned income. Your alternative is to have your employer correct your W-2 and add it. If trying to talk to your employer doesn't work, you can contact the IRS. Workers who believe they have been misclassified as independent contractors may request that the IRS determine their employment status for federal tax purposes by filing form IRS Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding.

But given that amount of money involved, you may just want to file a Schedule C and pay the tax.

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B

blindleaperAuthor

How do I fill out the Schedule C if the payment was a regular paycheck from my employer? I don't have any of the business information the form wants.

I'm fine with paying the taxes on the one check but is this going to result in me having to pay business taxes even though I don't actually own a business, since there will be a Schedule C on file?

J

JamesG1

The employer should have included this amount in your W-2 and had that option but did not do it. I do not know why you were placed in this situation.

The IRS will correctly claim that employment taxes are due on this amount. There are two options. The taxes can come from 50% from you (W-2 boxes 4 and 6), 50% from your employer and be reported on a W-2. Or it can all be paid 100% by you as self-employment income.

The IRS Form SS-8 option explained above is the IRS procedure for allowing you to pay your 50% in self-employment taxes. The IRS will determine whether the employer should pay the other 50% or not.

IRS Form SS-8 Instructions

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