Question

Business vs Independent Contractor

Forum|Forum|3 years ago
March 13, 2023
2 replies
0 views

I am a realtor/broker, working for a real estate company as an independent contractor. Under Business Income and Expenses, Turbo Tax refers to the 'business' and asks if I am an active participant in the business? Is Turbo Tax referring to the company I work for or to my own independent contracting business? I have no employees. It's just me. I'm not incorporated ... not an LLC or a business. I don't have an EIC. Should my answer be 'yes' or 'no'?

TurboTax Home & Biz Windows

M

MinhT1

You should answer Yes as you work actively in your business as a contractor to the real estate company.

You have a business as you receive a form 1099-NEC and file Schedule C. You do not own a business in the common meaning of the word. So in TurboTax answer that you use the cash method, that you do not have an EIN. You use your own name as the business name and your personal address as the business address.

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

R

randyharrison54

I am sure they are referring to "your" business. As you are and independent contractor and work for yourself, you are active in your business. You are responsible for your Medicare and income taxes, I hope you have had them withheld from your 1099 at least been sending quarterly estimated tax payments.

Good Luck!