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February 3, 2020
Question

I am trying to enter a 1099 misc but it keeps coming as I own the business I don’t. How do I enter this 1099 from someone else

  • February 3, 2020
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1 reply

KathrynG3
February 3, 2020

Technically, you would be considered as if you had your own business if you received a 1099-MISC. It is considered a different type of earnings and is taxed differently.

 

But, you could decide that the earnings are only a hobby.

 

If this is a business, then report income and subtract the expenses. There is a new deduction after the Tax Cuts and Jobs Act called the Qualified Business Income (QBI) Deduction that further reduces your net income by 20% if you qualify for it.

 

From the left menu>Federal>Wages & Income>Add more income>Self-employment. TurboTax will walk you through everything.

 

If this is a hobby, the IRS requires you to report all the income and take none of the expenses. It does not get the QBI Deduction. The IRS considers businesses that have not made a profit in 3 out of the last 5 years to be more likely treated as a hobby. 

 

From the left menu>Federal>Wages & Income>Add more income>Other common income>Form 1099-MISC click Start