Question

1099-MISC income

Forum|Forum|6 years ago
February 17, 2020
1 reply
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We entered 1099-MISC income both last year and this year for 'compensation' from Plexus Worldwide for selling their products. Last year it stayed in the Other Income or Loss category but this year it was moved to Sole Proprietor Business. We are not sole proprietors (own our own business) but simply distributors (like in the old Amway days). Why did it move this year, and what possible impact can it have?

B

bwergeles

If your 1099-Misc income is reported as self-employment income, it is subject to self-employment taxes, which is 15.3% of the profit from your business. Self-employment taxes are social security and medicare taxes. As an employee you normally pay half of the tax and your employer pays the other half. However, when you are self-employed, you are responsible for all of it. This tax is in addition to the federal income tax.

If you have self-employment income you are allowed to claim your expenses and other write-offs to offset your income.

If this is not self-employment income, you will need to delete it and re-enter your 1099-Misc by following these steps:

Click on Wages and Income at the top
Scroll down to Other Common Income and click on Show More
Click on Start or Revisit next to Form 1099-MISC and then click on "Add Another 1099-Misc" if applicable
After you enter the information from your form, TurboTax will ask you a few questions to determine what type of 1099-MISC it is and link it to the correct income section of your return
If you received your 1099-Misc for something other than a job (for example prize money, a lawsuit settlement or another reason that wasn't work-related) be sure to indicate that in your answers.