Question

2019 Taxes - Wife's 1099-MISC requiring schedule C information

Forum|Forum|4 years ago
March 28, 2022
1 reply
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Fair warning - I have no idea what I'm doing with taxes, it's why I'm using TurboTax.

I am behind on filing taxes. The first one I have to file is our 2019 taxes. Due to this being a past tax year I have to use the downloaded version of TurboTax.

Our main income is my full time job. This year my wife earned $700 doing work for a local theater. She got a 1099-MISC. I have entered the information, and am at the "Smart Check" section, and it tells me the software found errors on my federal tax return. They are questions about a schedule C. I have no idea what this is, how to fill it out. It's asking a question about whether it's qualified business income, the principal business code, etc?

How do I find the answers to these questions? When my wife did the 2019 work, the theater she did the work for got her to login to intuit and fill out a tax form before working. I can't get that form anymore, because when I login to intuit using the credentials she used, Intuit wants me to sign up for a self employed account, which we don't need. I just want to find out what form she signed.

Am I meant to fill out a schedule C for my wife? How do I figure out how to fill it out?

C

Cynthiad66

You explained yourself very well.

If you find yourself with a 1099-MISC document, and there’s a dollar amount listed in box 7 for Non-employee compensation, the IRS treats that as self-employment income and you’re supposed to pay Social Security and Medicare payments. This is also called self-employment tax which equates to 15% of that income. It is important to know that only dollar amounts in box 7 counts as non-employee compensation. So, if you received dollar amounts in box 1 for rents or box 3 “other income” you don’t have to worry about the extra self-employment tax. The rent goes on your Schedule E for rental income and the other goes on line 21 of your 1040.

If you have to enter a form Schedule C, the good thing is you can write off any expenses for earning that income.

You will need to use TurboTax Home and Business or Self Employed software if you want to enter expenses.

Click here for information on how to enter a Schedule C

@redgum

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