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William Perez

What to Do with Form 1099-MISC?

By March 2, 2006

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Today's tax question comes from Eric H. in New York. He asks, "I'm an independent contractor. Am I liable to pay taxes on income if my employer sends me a 1099 after January 31st? What about if I've already filed my return?"

Good question!

Yes, you will need to make sure your tax return fully reports all your income earned as an independent contractor.

Basically, income reported on Form 1099-MISC should be reported on Schedule C or C-EZ. Nice thing about these tax forms: you get to deduct all expenses associated with your business as an independent contractor. You will be taxed only on the net profits (income minus expenses).

Don't forget to also add Schedule SE to your return. This form calculates the Self-Employment Tax on your business income. Again, you'll have to pay this tax, along with any regular income taxes, only if you have a net profit.


If you have not filed your tax return, just add these forms to your return, and you will be fine.


If you have filed your return already, things get a little more complicated. You will need to file an amended tax return. Form 1040X is used to report the difference between your original tax return and your corrected tax return. If you used software, there's a probably an option in the program to begin preparing an amendment. You would then make any changes and corrections, and Form 1040X will be automatically filled out with the original data and the new corrected data.


Essential Resources:




Throughout the tax season I will be answering one tax question per day. Do you have a question? Visit the Ask a Tax Question page. Disagree with my answers? Post your comments in the Tax Forum.

Comments
March 2, 2008 at 11:34 am
(1) Grace says:

My daughter is a college student and had a position as a research assistant during the summer at MCV in Richmond. She just got a 1099-MISC for that work as a non-employee. Her only money was a stipend for food amounting to $1100.00. She didn’t get this until after the 1/31 deadline and I had filed her taxes (dividends earned) on 2/10 so now need to amend the return. As I fill out the forms thru Turbo Tax it says she is considered as a self-employed person with her own business which is really not the case. I am having trouble filling out the schedule C since she doesn’t have a business – just a student that lands a research position and gets paid for food to live at the university for 8 weeks. When the form asks for her business name and address, I don’t know what to put in those spots. Is this on the 1099 form or do I put her dorm address, home address? Not sure what to do. Instructions for the form are not very helpful so far. Thanks for any help you can provide,
Grace

March 3, 2008 at 5:12 pm
(2) Carla says:

I’m a research assistant and I also received a 1099-misc for “rent” and “nonemployee compensation”. I just talked to the university and was told that personal money I used for equipment and then was reimbursed for was filed under miscellaneous. In my case, the 1099 is a mistake and I don’t have to worry about it. I would suggest that you call the university and ask why the per diem would be miscellaneous income and not part of her wages. Hope this helps.

April 1, 2008 at 2:07 pm
(3) Robert says:

I received a 1099-misc for 3885.71 as an Life/Health Insurance Agent, but I left the company because I was not making enough money to live, so the business was ‘a loss.’ The article stated that the amount needs to reported ‘ONLY IF YOU HAVE A NET PROFIT.’ Does this mean I do not have to report the 1099-MISC? How do I handle this form since the business was a loss. I never had a business ID or anything and was basically an independent contractor. Help Me, Please.

April 1, 2008 at 3:31 pm
(4) William says:

Robert: You do need to report the income that was reported on Form 1099-MISC. This goes on Schedule C and is attached to your Form 1040. The part about “only if you have a net profit,” refers to the self-employment tax. This tax is assess on the net profit of a self-employed person. Since you had a loss, you will not have to pay this separate tax.

April 1, 2008 at 11:12 pm
(5) amy says:

I sold rights to use a photograph ($800) to a publishing company and got a 1099. I don’t have my own photo business, and I have a regular full time job and received my w-2s- how would this situation be handled for filing?

April 1, 2008 at 11:37 pm
(6) William says:

Amy: Sounds to me like these are royalties paid for the use of your photograph. This is reported on Schedule E page 1.

April 2, 2008 at 1:42 am
(7) amy says:

thank you!

January 10, 2009 at 11:21 am
(8) Steven Wade says:

That Schedule C comment is quite informative.
I was denied rehire from an income tax company because I put Schedule C income on line 21. The dopes running their training division never taught us how to do it.

January 19, 2009 at 8:54 pm
(9) taxes says:

Steven, if the work was performed was clearly not a business (i.e., was a hobby), then it might be properly reported on Line 21 instead of on Schedule C. Also, if the amount was $400 or less, it would not matter mathematically where the amount was reported, since there would be no self-employment tax due.

January 23, 2009 at 2:43 pm
(10) Raos says:

My husband helped a friend get a job with his earlier company and received a 1099-MISC for the referral fee he received. The amount is entered on Box 7 of the form. He does not have a business nor does he provide any sort of service. Where does this amount get entered while filing our 2008 taxes?

January 23, 2009 at 3:23 pm
(11) William Perez says:

Raos, this income is reported on Schedule C or C-EZ. You’ll also need to add a Schedule SE if the dollar amount of the net income from the Schedule C (or C-EZ) is over $400.

February 3, 2009 at 2:06 pm
(12) juli says:

my sister watches my other sisters kids, and gets paid for it. now the one wants to claim the child care credit but is not sure what form to give the other. this is the only income for the one so how does she file it on her taxes. what forms do they need

February 10, 2009 at 8:09 pm
(13) Marjorie says:

My son was on a court tv show and received $2,200. He received a form 1099-Misc. How is he supposed to account for this on his 2008 taxes?

February 18, 2009 at 7:30 pm
(14) julie says:

My company issued me a 1099 Misc. for $30,000 for the housing and utilities they cover for us all year long. What are our options to help lessen the blow of paying the taxes on this money all at once in the future. Can my company set this up differently so we pay taxes a little throughout the year instead of all at once during tax time?

February 18, 2009 at 7:37 pm
(15) julie says:

I should add to my question above that we do not own the home we live in, my company owns it and all of the utilities are in the company’s name.

February 21, 2009 at 8:31 pm
(16) taxes says:

Juli, this is rather complicated situation, and the other sister (who wants to take the child care credit) should consult with an experienced tax accountant. The issue here is that sister #2 (with the kids) may need to pay the nanny tax to cover sister #1′s Social Security and Medicare taxes. Sister #1 may or may not need to file a return, it will depend on her total income, and whether she is considered an employee or self-employed, which will intersect with the nanny tax issue I just mentioned. Also, sister #1 must be over 19 years old if sister #2 wants to claim the tax credit. Because of the multiplicity of issues here, they should seek professional input to make sure they cover all their bases.

February 21, 2009 at 8:33 pm
(17) taxes says:

Marjorie, your son will fill out Schedule C or C-EZ and attach it to the Form 1040 long form. He’ll also need to fill out Schedule SE to calculate his self employment tax, which pays into Social Security and Medicare.

February 21, 2009 at 8:49 pm
(18) taxes says:

Julie, first issue is whether you are employees or independent contractor with respect to the company you work for. If you’re employees, then you should not be receiving a 1099-MISC at all, and the employer will need to correct both your 1099 and your W-2.

Second issue. Housing provided by an company for its workers is considered taxable income unless three tests are met. If all three tests are met, then the value of the housing is excluded from your income. The three tests are:

(1) the housing is for the convenience of the employer,
(2) the housing on the business premises of the employer, and
(3) the housing is a condition of employment.

Note that this references employer and employment.

Third issue. If you are independent contractors, then this exclusion is not available to you. Independent contractors are considered self-employed.

After you work through the issues over whether this is taxable to you or not, then you’ll be in a position to plan ahead for next year. If it’s taxable, I would increase your withholding or pay in extra estimated taxes to cover the tax bite.

February 24, 2009 at 7:15 pm
(19) Ellie says:

I received a 1099-misc for merchandise I received as a sales award. I am not an employee of the payer, not an independent contractor. Where do I report box 7? I am employed by a company other than the payer.

February 25, 2009 at 4:29 pm
(20) William Perez says:

Ellie, if the dollar amount is listed in box 7 for nonemployee compensation, then this needs to go on a Schedule C or C-EZ. This income will also be subject to the self-employment tax (for Social Security and Medicare) so you will also need Schedule SE.

February 25, 2009 at 6:45 pm
(21) Ellie says:

William – after more research, I believe the amount should go in Box 3, not Box 7! I have notified the company that issued it. We are not self employed individuals, and only received this FMV in awards for sales through my husband’s employer.

February 26, 2009 at 2:20 pm
(22) Dorothy says:

I am helping my daughter who is a teacher to file her income tax returns. She received her W-2s from the teaching job she does.The other job she where she works part time sent her a 1099b and when I fill out the form it asks me for the company name but she just tutors for this nonprofit organization and she is not one of the employees. How should I fill in this amount in her tax returns and what should I write for the company name.

March 1, 2009 at 12:17 pm
(23) Sam says:

William, I have the same question some people have asked here but your answer doesn’t cover the “full” question.

Here is the question:

I have a friend who has got a 1099-MISC form from her employer for tax year 2008. She didn’t get any W-2 form from them. And she doesn’t have any other jobs.

Your answer to similar questions has been:

This income is reported on Schedule C or C-EZ. You’ll also need to add a Schedule SE if the dollar amount of the net income from the Schedule C (or C-EZ) is over $400.

But Schedule C is for those who own their business and have Net Profit\loss from business. Schedule SE is also for Self Employed people who own a company.

When you use TurboTax it says you are either an Independent Contractor or a Self Employed/Business Owner if you received a 1099-MISC. Then it asks you to provide the following:

1) Your “business” name
2) Your business ID (federal ID) number
3) Accounting method used in the business (i.e., Cash, etc.)

Well, she doesn’t have her own “business” and she is not Self Employed. She just works for this company who gave her a 1099-MISC for her wages.

So:

1) Did her company make a mistake giving her 1099-MISC? And should they have had issued her a W-2 instead?

2) If this is not a mistake, then how can she report this income when TurboTax considers her an Independent Contractor/Self Employed when she dosn’t own a business of her own?

Thanks in advance,
Sam

March 2, 2009 at 2:39 pm
(24) JP says:

If I am already working a full time job and receive a W-2. and I make additional money and am given a 1099. What do I need to do before tax time next year -taxes for (2009) in order to offset the 1099 taxes? What deductions, etc? Thanks.

March 2, 2009 at 4:57 pm
(25) Bill says:

I am a self employed owning a business oversseas. I am not a USresident and last year all work perofrmed was on a project in England. However I was contracted via a US company and had payments be deposited in US bank acocunt since my wife is on an F-1 visa studying a MAsters degree in US and I sent payments to maintain her. I did receive a 1099 MISC form for income I made last year for this contract work. However I worked under an English work permit and work visa and have work permit in england stating my salary in GBP. What should I do in this case?

March 21, 2009 at 8:08 pm
(26) Kasey says:

I, too, am puzzled about how to file a 1099-MISC form I received from my daughter’s school. I worked at the school in exchange for the balance on her tuition. I never received any money; they just applied the hours I worked toward her tuition balance. I was surprised when I received a 1099-MISC form with the tuition amount listed in box 7 as Nonemployee compensation. I don’t have a business, so I’m not sure how to file. I can’t list it as Other Income on the 1040 form because it was a box 7 amount. Do I have to pay taxes on money I never received? Any help would be appreciated!

March 30, 2009 at 9:18 am
(27) Lulu says:

My husband worked as a temporary contractor out of state. He filed a W9 but the company refused to send him a 1099 saying that since he made less than 10k he does not need to report the income. I understand that you must report any income over 600 so, can I file our taxes & report the income without the form?. These people is not returning our phone calls and no form ever came in the mail. I don’t want to delay our taxes any longer. My husband had a lot of expenses while working for them (gas, supplies, lodging, etc) the company initially told him the expenses were going to be reimbursed but he was never paid for them either. We have receipts and we will be claiming them as business expenses.
Thank you for your information

March 30, 2009 at 1:42 pm
(28) mrs smith says:

I received a 1099-MISC from the county of Oneida in NYS. I received these funds for watching my niece who’s mother qualifies for day care assitance. According to the instructions this is said to be self employment income. I don’t really understand that since i am not self employed. I have a full time job which i receive a W2 for. I believe this should be in box 3 -is that correct?

April 6, 2009 at 4:21 pm
(29) Diane Favazza says:

My daughter is a student at Northeastern University in Massachusetts. Her father and I are divorced and his insurance would no longer cover her because of the 5th school year at Northeastern. She had to take out a loan to pay for a year of insurance which amounted to $3,950, because of the Massachusetts law which states that everyone must have health insurance.Can she amend her 2008 taxes and claim this expense? What forms are needed to do this? She filed a 1040EZ form and has already received her return. Any help would be greatly appreciated!!

April 6, 2009 at 4:40 pm
(30) William Perez says:

Diane, your daughter does not need to amend her tax return. That’s because her deduction for health insurance would not exceed her standard deduction for the year, which is 5,450 for a single person in 2008. Thus it sounds like she file her return correctly.

April 13, 2009 at 4:25 pm
(31) Laura says:

I received a 1099-misc for egg donation to a fertility clinic. I do not own a business and do not understand how to correctly file for this. Any suggestions?

January 23, 2010 at 11:22 am
(32) Marcel says:

I’m a truck driver for a contractor with FedEx(it’s an over the road position). Nothing comes out of my paycheck,I know I have to file for my taxes and I will get a 1099 form. How will I file for taxes because I’m not self-employed?,it’s not my truck and I don’t want to pay taxes for self-employment.

January 25, 2010 at 3:02 pm
(33) William Perez says:

Re: “I don’t want to pay taxes for self-employment”. You are going to have to pay either the self-employment tax, or one half of that amount if you are an employee. If you are a bona fide employee, you can ask the IRS to step in and investigate your employer. If you are a bona fide contractor, however, then you’ll be stuck with the self-employment tax.

February 1, 2010 at 6:24 pm
(34) Tara says:

Hi. I am confused about my boyfriends taxes this year. I always use turbo tax but this year he received a 1099-MISC on top of his W-2 and I am unsure how to handle it. Because the income was reported in Line 7 I have to fill out a Schedule C which is stating small business owner. He works for an automotive company and gets small bonuses from this other company on lube work that is sold. He does not own or run a business, they are small bonuses on top of his normal work. I am being asked for business name, accounting methods, etc. None of this applies! Help, not sure how to handle this.

February 3, 2010 at 4:37 pm
(35) Margaret says:

Hello,

I received a 1099 MISC for unemployment collected from a Church Unemployment Pay Program (Was laid off in June 2009 and collected until December 2009). This seems odd to me and I am hoping there is some way to deflect the blow I will have to pay on the $5,000 (half my original earnings) I collected in the 6 months I collected Unemployment. I was clearly not “Self Employed” but was actively pursuing a job. Any help at all would be appreciated.

Thanks, Margaret

February 6, 2010 at 1:39 am
(36) Rachael says:

I was wondering about my 1099-MISC, i am an independent contractor for an online business, and wanted to deduct the new computer i just bought and internet service i pay for throughout the year. The catch is that i give the money to a parent, who pays the bills with their credit card.
Would i still be able to claim these deductions?
Thanks!

February 6, 2010 at 7:31 am
(37) Robert says:

My father does occasional cleaning for our landlord. She sent us a 1099-MISC with the amount she payed us over the year in box 7. My taxes are all ready to be filed but this 1099 is confusing me. It wants me to list my business, and we don’t have a business. We just do this as a favor for her and she’d give us $10/hour for helping her out. Can I not use Turbotax this year because of it?

February 6, 2010 at 11:58 pm
(38) Michelle says:

My husband is a construction worker. His employer gives him an extra check each month for his tools and truck (rental fees if you will.) I am not sure why, but his employer gave him a W-2 AND 1099-MISC with the “rental fees” included in “Box 7″. Turbo Tax tells me that we have to file a SS-8 form. Can anyone tell me why and how to file this? Will it affect my federal tax return?

February 8, 2010 at 12:00 am
(39) Amy Johnson says:

I have the same problem as Grace. My daughter received a stippen for $2000 for summer scholarship. She had to go for 6 weeks in another city and use L rails and spend alot of her own money which the $2000 helps recover. Turbo Tax is not helpful and i am very confused how to go about this. HELP!!! thank you

March 13, 2010 at 9:04 pm
(40) Jay says:

I have a rental property that was in 2009, for the 1st time, rented through the Section 8 low income housing program. I received a 1099 Misc from the KC Housing Authority for this Section 8 rental income. Where do I report this income on my 2009 tax filing forms?

March 16, 2010 at 8:29 am
(41) Amy says:

I have a question. i have two schedule Cs needed apparently. one for my husband’s 1099-MISC form and one for my statutory employee income from my W2. i have done that, but my tax software then tells me that i need to allocate a different “copy” for the 1099 because the number entered is the number entered is exclusively for the statutory employee wages. i have tried every number i can think of, and it keeps giving me an error. can you help, please????

March 17, 2010 at 2:10 am
(42) kay says:

I’ve been separated for several years, and my paper hubby claims all the kids on taxes. My adult son, not his own( but whom he provided for during the marriage), a senior in high school, watched his 2 younger siblings & qualified for monies paid from the grant I had recieved for going to college for my RN. He got this 1099-MISC for $900.

We were going to file, noting he could be claimed as a dependent by someone else, but none of the forms for taxes seem to go with it, and he isnt a business, etc so the c, and c-ez forms don’t seem to be applicable.

I keep seeing anything over $400 must be filed, but how do you file something that doesnt seem to match any of the forms?

PLEASE HELP!

April 14, 2010 at 9:44 pm
(43) Heather says:

My son made $707 and was given a 1099-misc. what do I do with that???

April 14, 2010 at 10:04 pm
(44) William Perez says:

Report that on a Schedule C.

April 20, 2010 at 10:51 pm
(45) Tax Penalty says:

In general, when you receive a 1099-MISC with an amount in non-employee compensation that is self-employement income and should be included on Schedule C. If you receive a 1099-MISC with an amount in “rents” then this would be included on Schedule E.

May 12, 2010 at 10:33 pm
(46) Chandler AZ CPA says:

Even though you have to report it on Schedule C, make sure that you report all the expenses that you have. This will of course lower your tax liability, including reducing self-employment taxes.

June 27, 2010 at 1:40 pm
(47) Real Estate Bird Dog says:

Make sure that you get this done right. If you don’t the IRS will send you a CP2000 and a big bill. If you are confused then take it to a CPA and he or she can help you.

July 18, 2010 at 11:59 pm
(48) Debt Cancellation says:

It is generally subject to SE tax if there is an amount in box 7. If it is “rent” then it is generally not subject to SE tax.

October 18, 2010 at 1:43 pm
(49) Megan says:

I work for a screen printing business as a deisgn artist. I asked if taxes could be taken out of my check but he told me that I would be getting a 1099 form because the business cant afford to take any of our taxes out for us. Doesnt this make me listed as being ‘self employed’? what percentage will I have to pay in taxes back to the goverment?

November 7, 2010 at 11:11 pm
(50) Chicago IL CPA says:

Yes…with a 1099 you are effectively “self-employed” and will have to pay 15.3% in self employment taxes.

November 17, 2010 at 8:10 pm
(51) Estimated Tax Penalty says:

People don’t realize that with a 1099-MISC you are effectively self-employed and self employment taxes go with it.

November 26, 2010 at 5:37 pm
(52) Katy CPA says:

Don’t let your employer talk you into a 1099-MISC unless you are truly NOT an employee.

January 25, 2011 at 1:26 pm
(53) james says:

i received a 1099 -misc because i work at the school as an athletic director. I receive no money for the job buy my daughter’s tuition is covered. What do i need to do for taxes.

January 25, 2011 at 3:58 pm
(54) William Perez says:

James, are you working for the school as an independent contractor? If so, the amount of the tuition waiver would be taxable income to you as a self-employed person, and you’ll need to report this on a Schedule C.

January 31, 2011 at 2:06 am
(55) Jacklyn says:

Hello, I am really bad at this, so pardon me if I sound completely confused…
I have two questions. I recieved a 1099-misc form for egg donations, a total of $14,500 for two different times. Once in August 2010 and another in January 2011. The income amount is in Box 3 of the 1099 form “other income”, not box 7 “nonemployment compensation” (from what I understood to be self employment). Egg donation is not my “business” so I didnt think I needed to fill out any SE forms???
First question, shouldn’t these two separate donations be filed separately? (I was under the impression the tax yr ended Dec 31st. So my Jan. donation would be filed in 2012 for 2011 taxes.)
Second question, Do I file the amount of my 1040 form only on line 21 “other income”??
Im hoping I wont be taxed more than 13% if this is correct. This is all of my income also, no w-2s.
THANK YOU!!!

February 15, 2011 at 10:41 am
(56) T Williams says:

I recieved a 1099 MISC for teacher loan forgiveness….does this need to be in schedule c? And am I considered self employed even though I get a w2 for being a teacher?

June 11, 2011 at 10:26 am
(57) Prior Tax Returns says:

A 1099-MISC should be on your schedule C, but not if it relates to debt cancellation. Take a close look and make sure.

June 11, 2011 at 2:00 pm
(58) Dave says:

I was not in a US for 2010 Tax year but still I received 1099-MISC ($700) from my online business, Do I need to report this income to IRS? If yes, how to file tax return? I dont have W2 for year 2010 and I never visited US in 2010.

Thanks in advance for helping me out.

February 3, 2012 at 2:12 pm
(59) Alex says:

I worked at a heating and air company I got a 1099 misc but when I got my check I also got a receipt for my taxes of 30 dollars a week or more for about 2 months when I worked there a total of 5 months what should I do?

February 12, 2012 at 10:21 am
(60) Ashley S. says:

After filing my taxes this year, on form 1040A, I received a 1099-MISC. I have already received my refund for the 1040A. I know that I have to amend on form 1040X and count the money not tax in box 7 of the 1099-MISC. Are there any schedules I need to send in with my 1040X to have it correct or do I just send in a copy of the 1099-MISC. Also, since I have to pay back the difference from my original tax return do I send it with the 1040X?

Can you please help?

March 4, 2012 at 12:00 pm
(61) Randy says:

I was working as a postdoctoral researcher at a university, drawing a regular salary (employee). Some of my work was patented through the university’s IP foundation and I received $1750 as a token royalty and received a 1099MISC form. I’m confused as to where this goes on 1040. Turbo Tax wants me to do a Schedule C but I’m not a business. Schedule E seems to be more for real estate, but the 1099MISC instructions for box 1 and 2 says to fill out a Schedule E for “royalties from oil, gas, or mineral properties, copyrights, and patents.” My work is pharmaceutical in nature so where else would this go since I’m not working in oil, gas, or mineral properties?

Thanks.

March 6, 2012 at 5:59 pm
(62) Thibault says:

Hi!

I am an international student from France and was interning in a US company in 2011, from July 5th to November 30th.

I was given a stipend, and have now received my 1099 MISC form. I double checked that everything on it is correct, but I have no idea what the next step is, as taxes in France are handled a different way.

All I have is the 1099 MISC, and none of the other forms mentioned.

Is there anyway that you can help me out?

Thanks,
Thibault

April 3, 2012 at 11:00 pm
(63) David says:

I am on disability and received a 1099R for $126 from a job I worked at several years ago. Since my SS is not taxable, how do I file the 1099R to pay taxes?

May 22, 2012 at 2:10 pm
(64) Michelle83 says:

My former secretarial job had me as an independant contractor and I was issued a 1099 MISC earning $20132.00. I am filing late and have no idea what to do. This was my only income for the year. Do i fill out a 1040 and enter 0 in the in the wages category? Help!

February 5, 2013 at 9:18 pm
(65) Robert says:

My wife has been an independent business partner with a network mkt company selling health and nutritional supplements for the last few years which I have been filing a schedule C. In 2012 she began doing mystery shops (evaluting businesses) and getting paid a set fee for each shop. We received a 1099-MISC. I understand I need to report on schedule C. Do I need to report this income and calc the net profit/loss on a separate schedule C or can I combine the two incomes/expenses on one schedule C.

February 23, 2013 at 7:40 pm
(66) amanda says:

i worked for a health care agency and got a 1099-misc for 721$ where do i file this it was not for my own buisness and what are these schedules what ever letters are they other forms i need to fill out with my 1099? please help me!

April 5, 2013 at 11:10 pm
(67) Brittany says:

As an AmeriCorps member I received a Form 1099-MISC instead of a Form W-2 for my living stipend. By AmeriCorps standards I was considered a State/National member and instead of my stipend payments being paid to me through AmeriCorps they were paid to me through the payer (as stated on the Schedule-C) which is the organization I was conducting my year of service with. When I filled out my paperwork before starting my year of service I filled out a W-4 form and was never told that they would be considering me as a private contractor as opposed to an “employee” (basically that they would be filing a 1099-MISC instead of a W-2). When doing my taxes it is showing that I owe an VERY large sum of money because of all the taxes that come along with being “self employed”. I have search countless sites and cannot find another AmeriCorps member who has experienced this. However, I am assuming that they were able to decide on filing me as a contracted employee and did not have to disclose this to me as I was never informed. Is this correct? If so, I would also like to know if there is any other action I can take in trying to reduce the amount I owe and find some kind of deduction I might qualify for? I feel as though I was duped in a very sad but legal way. Any help you could give me please would be ever so greatly appreciated! Thank you in advance.

April 6, 2013 at 6:39 pm
(68) William Perez says:

Brittany, I found the following on the IRS Web site on the topic of receiving a Form 1099-MISC from AmeriCorps,

“AmeriCorps Education Awards and living allowances are taxable in the year they are paid. If you receive an award, you should receive a Form 1099-MISC (PDF), Miscellaneous Income. The 1099-MISC will show your award dollar amount in box-3 Other Income, with no withholding. Report these amounts on line 21 for Other Income on the Form 1040 (PDF).”

June 9, 2013 at 5:36 pm
(69) jayme a says:

I am a nanny. in 2011,August I took a job cleaning and running errands for a person who had knee surgery. I was paid by her insurance company. She had surgery on her other knee and the job ran through may of 2012. it was for one hour a day, seven days a week. I just did it for extra money. I received a 1099- misc. from the insurance company, under line 6, for medical health care benefits. Why would I have to file as myhaving my own business when I had a full time job and was just doing this one time, for extra income? how do I file this for 2012, taxes? I don’t mind paying taxes on the income I earned, but I am low income and can not afford to pay the business tax.

June 10, 2013 at 2:08 pm
(70) William Perez says:

The income from a self-employed activity is reported on Schedule C and Schedule SE, with the results summarized on the Form 1040.

January 22, 2014 at 10:53 am
(71) shay says:

Hello i worked for a summer program for my school in 2011 and i received a form 1099 non-employee compensation i didn’t file it in 2011 will i be able to file it this year.

February 2, 2014 at 3:01 pm
(72) Sandy says:

My husband and I owned a company together but are now divorced. He has been giving our son 400.00 a month in a written check to help support him. Now this year he has given him a 1099 misc as if he has worked for him in his business. This should be a gift he has never worked for the comany at all but he is listing it as other income on a 1099 misc. Is this legal.

February 18, 2014 at 8:42 pm
(73) ann says:

i receive a 1099misc for a foreclosure on my house i receive 6000 will that affect my tax return i made 39,800 last year.

February 24, 2014 at 6:14 pm
(74) Sharon says:

I received a 1099-misc for General Damages awarded through a legal settlement from my former employer. They reported this in Box 7 and I believe it should be in Box 3. I don’t believe they wil correct and resend the 1099-misc and report in box 3 (not good terms obviously). I do not have a business, the damages received were not from services performed. I e-file through TaxAct and I’m not sure if I can put it in box 3 with an explanation or if I will have to pay SE taxes. Please advise! Thanks!

March 9, 2014 at 4:53 pm
(75) jen says:

just because you have a 1099 doesnt mean you are self employed and have a business.

here is the answer taken directly from irs website

If you were not an employee of the payer, where you report the income depends on whether your activity is a trade or business. You are in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous.

If you are in a self-employed trade or business, you must include payments for your services on Schedule C (Form 1040) (PDF), Profit or Loss From Business (Sole Proprietorship), or Schedule C-EZ (Form 1040) (PDF), Net Profit From Business.

If you are self-employed, you will also need to complete Schedule SE (Form 1040) (PDF), Self-Employment Tax, and pay self-employment tax on your net earnings from self-employment of $400 or more.
There is no withholding of tax from self-employment income. As a self-employed individual, you may need to make estimated tax payments during the year to cover your tax liabilities.

If you are not an employee of the payer, and you are not in a self-employed trade or business, you should report the income on line 21 of Form 1040 and any expenses on Schedule A (Form 1040) (PDF), Itemized Deductions.

i also prepare taxes and many people get confused on this one

March 17, 2014 at 8:21 pm
(76) Jane Nelson says:

My daughter didn’t receive a a 1099-MISC or any for that. Do I need a form? Or just enter it into Turbo tax?

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