Question

Wife's w2 has $0 in box 1 but has $$ listed in box 7.

Forum|Forum|6 years ago
March 5, 2020
3 replies
0 views

She made less than $3000 working for a church last year. the W2 she received only lists the income in box 7 nonemployee compensation. So the summary says $0 for income. This will not allow us to efile. How do I correct this?

TurboTax Premier Online

macuser_22

Employee

That is NOT a W-2 but a 1099-MISC and is self-employed income.

Enter it in the 1099-MISC section.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

M

MinhT1

If your wife's income is listed in box 7 - Non-employee compensation, then this is not form W-2, but form 1099-MISC. Please check. If this is the case, you have to delete the W-2 entry and enter form 1099-MISC.

Income reported in box 7 of form 1099-MISC is self-employed income. Your wife is considered as self-employed and in IRS parlance, is operating a business doing what she does to earn the income reported on the form 1099-MISC. TurboTax will populate a Schedule C after you enter all your information.

Self-employed income is subject to income tax AND self-employment tax (calculated at 15.3% on 92.35% of net self-employed income).

She does not own a business in the common meaning of the word. So in TurboTax answer that she uses the cash method, that she does not have an EIN. She uses her own name as the business name and her personal address as the business address.

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C

C-p2110

I get why the income is listed as non employee income, why can’t I get a box 7 to appear in TurboTax 2020. I didn’t have a problem the last couple of years

DawnC

Employee

Because the amounts should have been paid on a 1099-NEC instead of the 1099-MISC. The form is new this year, but a lot of places still issued the 1099-MISC. You can get around this though by entering it as a 1099-NEC instead. Use Box 1 of the 1099-NEC and enter the amount that is in Box 7 of the 1099-MISC. This way, TurboTax will deal with the housing allowance and Self-Employment tax correctly. Since the Box 7 entries have been removed from TurboTax (for 1099-MISC), you won't see Box 7 as an option. @C-p2110

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