Tax Tips I Received Form 1099-MISC But I Don’t Own a Business Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Mar 31, 2006 - [Updated Jan 31, 2024] 1 min read Lots of questions asking what to do when you get Form 1099-MISC… and you don’t own your own business but instead you’re an employee of another company. Yet you get this form; what do you do with it? The short answer is: if your Form 1099-MISC shows an amount in Box 7 for nonemployee compensation and it’s because you did consulting work or other services for someone, you DO now “have a business!” You’re in the business of consulting, and you have to file Schedule C to report that 1099-MISC income. This is a requirement, not an option! The good thing about filing Schedule C is the ability to apply any expenses you incurred while performing those services. Think about what you did: did you drive places during the course of the work you did? Take a mileage deduction. Did you buy computer or office supplies to use during the consulting? Take an office supplies deduction. The only downside is that you’ll be subject to self-employment tax on your consulting earnings… which is basically the self-employed person’s equivalent of social security and Medicare tax that employers normally withhold from your paychecks. That tax is calculated on Schedule SE, and you’ll see an amount appear on Form 1040, line 58. Previous Post Why is the Refund Amount Changing When I Enter a… Next Post How Do I Download and Install Multiple States? Written by TurboTaxBlogTeam More from TurboTaxBlogTeam 18 responses to “I Received Form 1099-MISC But I Don’t Own a Business” I do not have a business I use my Lap Top for pleasure. Reply I received a bonus from the company that we were affiliated with however I did not work for them. I was sent the 1099 and is requested to file schedule C form but I do not know what I must put on the business description. Please help Reply Hi Cristina, When you get to the section that ask what your business is you can enter what your business is and there is a A place where you can look up a code for the type of business. Also since you are filing schedule C don’t forget to deduct any associated business expenses. TurboTax will ask you simple questions and give you tax deductions and credits you’re eligible for. Thank you, Lisa Greene-Lewis Reply I worked for a nonprofit organization in 2012 and 2013. They hired me, trained me, and paid me $8.00 an hour, but did not take out taxes. I received 1099-misc forms from them, and the amount is listed in nonemployee compensation. I had to learn to use their software and use their assessments. I am disabled and also received non-taxable social security benefits. I am now trying to file my 2012 and 2013 tax returns because I was so confused about what to do. I wasn’t a business. I had to do what they told me to do. How do I file? Reply Hi. You can find a blank fillable 1099 misc 2012 form here. http://goo.gl/th4hO6 You can fill out the form, save it, fax it, and email it. Please feel free to use it. Reply I received a 1099-MISC with less than $600 in box 3. My employer told me it was for the company truck they gave me. They pay all the expenses and mileage in lieu of me using my own truck with a truck allowance. So what is this money actually for that I never received. Is it an error or do I report it and where on TurboTax. Reply I work for a catering business occasionally that sent me a 1099 at the end of the year. I filed a schedule C even though that is the only income I have for that line of work. I’m basically an employee but they don’t want to deal with paying my taxes. Do I also have to get a business license? This is not my business – I don’t recruit customers and only got paid about $2000 in hourly wages. Reply Hi Amy – Receiving a Form 1099-MISC with an amount in Box 7 makes you an independent contractor — “self-employed.” We can’t advise about business licenses or topics aide from income taxes. The attached link has more information. Hope it helps. –Christopher http://turbotax.intuit.com/support/go/GEN83692 Reply go to irs .gov fill out a ss8 form and send it to the irs. Reply 1099s are from one business to another. IF you are not a registered business with the state and don’t have a sales tax permit. How are you running a legal business. how do you claim business deductions. You cant. if you file it. your basically committing fraud with a signature. 1099 trap. tell your employer to send you a w2 or your calling the irs. I disagree with the standard advice given by Turbotax. My husband, an employee, received a 1099-MISC from a company that sponsored a workshop he attended at the request of his employer, and which had reimbursed him for his travel expenses. He is NOT self-employed by any stretch of the imagination! Our accountant handled this by providing a supporting statement for Line 21 of the 1040, other income, showing 1) the income on the 1099, and 2) a second line, subtracting the income, with the explanation “reimbursed expenses.” I’m commenting because perhaps this will help someone else who runs into the same problem. Reply Thank you! Best reply yet! Reply I am a summer intern at a small design firm, and I got my first paycheck and it had no taxes deducted from it. I was told by friends that I would have to file a 1099-MISC. Is this the case? I have not received my professional degree yet. Help! Reply I received a 1099-misc as a result of a type of ‘severance’ package from a company. It was supposed to be a signing bonus, however the company froze hiring before I officially started. Thus the signing bonus became severance pay. (1) Does this mean I have a business? (2) Is this income subject to the ‘self-employment’ tax? Thanks for the help… Reply Hi David. How did you end up having to handle this? I have a similar situation where my former company sent me a 1099 Misc for my severance. Now IRS wants me to file schedule SE and pay more 🙁 Reply Well, you may be able to deduct either depreciation on that truck (or maybe even Section 179 expensing) in the year you buy it… which gives you a serious write-off! If you can buy a truck over 6,000 lbs, you can take that Sec 179 deduction for probably the entire cost of the truck… major tax savings! It doesn’t matter if you finance it or not. You can also deduct your gas, oil, car washes and all that… Reply I’m wanting to know what is the best advantage for me whether to keep my existing truck and write-off mileage and maintenance, or to purchase a new truck and write-off the complete payment? Reply I recieve misc. income for the use of my truck from the company I work for. If I purchase a new truck with that misc. income can I write-off the total payment for the truck plus interest, mileage, maintenance? Reply Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? 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I received a bonus from the company that we were affiliated with however I did not work for them. I was sent the 1099 and is requested to file schedule C form but I do not know what I must put on the business description. Please help Reply
Hi Cristina, When you get to the section that ask what your business is you can enter what your business is and there is a A place where you can look up a code for the type of business. Also since you are filing schedule C don’t forget to deduct any associated business expenses. TurboTax will ask you simple questions and give you tax deductions and credits you’re eligible for. Thank you, Lisa Greene-Lewis Reply
I worked for a nonprofit organization in 2012 and 2013. They hired me, trained me, and paid me $8.00 an hour, but did not take out taxes. I received 1099-misc forms from them, and the amount is listed in nonemployee compensation. I had to learn to use their software and use their assessments. I am disabled and also received non-taxable social security benefits. I am now trying to file my 2012 and 2013 tax returns because I was so confused about what to do. I wasn’t a business. I had to do what they told me to do. How do I file? Reply
Hi. You can find a blank fillable 1099 misc 2012 form here. http://goo.gl/th4hO6 You can fill out the form, save it, fax it, and email it. Please feel free to use it. Reply
I received a 1099-MISC with less than $600 in box 3. My employer told me it was for the company truck they gave me. They pay all the expenses and mileage in lieu of me using my own truck with a truck allowance. So what is this money actually for that I never received. Is it an error or do I report it and where on TurboTax. Reply
I work for a catering business occasionally that sent me a 1099 at the end of the year. I filed a schedule C even though that is the only income I have for that line of work. I’m basically an employee but they don’t want to deal with paying my taxes. Do I also have to get a business license? This is not my business – I don’t recruit customers and only got paid about $2000 in hourly wages. Reply
Hi Amy – Receiving a Form 1099-MISC with an amount in Box 7 makes you an independent contractor — “self-employed.” We can’t advise about business licenses or topics aide from income taxes. The attached link has more information. Hope it helps. –Christopher http://turbotax.intuit.com/support/go/GEN83692 Reply
1099s are from one business to another. IF you are not a registered business with the state and don’t have a sales tax permit. How are you running a legal business. how do you claim business deductions. You cant. if you file it. your basically committing fraud with a signature. 1099 trap. tell your employer to send you a w2 or your calling the irs.
I disagree with the standard advice given by Turbotax. My husband, an employee, received a 1099-MISC from a company that sponsored a workshop he attended at the request of his employer, and which had reimbursed him for his travel expenses. He is NOT self-employed by any stretch of the imagination! Our accountant handled this by providing a supporting statement for Line 21 of the 1040, other income, showing 1) the income on the 1099, and 2) a second line, subtracting the income, with the explanation “reimbursed expenses.” I’m commenting because perhaps this will help someone else who runs into the same problem. Reply
I am a summer intern at a small design firm, and I got my first paycheck and it had no taxes deducted from it. I was told by friends that I would have to file a 1099-MISC. Is this the case? I have not received my professional degree yet. Help! Reply
I received a 1099-misc as a result of a type of ‘severance’ package from a company. It was supposed to be a signing bonus, however the company froze hiring before I officially started. Thus the signing bonus became severance pay. (1) Does this mean I have a business? (2) Is this income subject to the ‘self-employment’ tax? Thanks for the help… Reply
Hi David. How did you end up having to handle this? I have a similar situation where my former company sent me a 1099 Misc for my severance. Now IRS wants me to file schedule SE and pay more 🙁 Reply
Well, you may be able to deduct either depreciation on that truck (or maybe even Section 179 expensing) in the year you buy it… which gives you a serious write-off! If you can buy a truck over 6,000 lbs, you can take that Sec 179 deduction for probably the entire cost of the truck… major tax savings! It doesn’t matter if you finance it or not. You can also deduct your gas, oil, car washes and all that… Reply
I’m wanting to know what is the best advantage for me whether to keep my existing truck and write-off mileage and maintenance, or to purchase a new truck and write-off the complete payment? Reply
I recieve misc. income for the use of my truck from the company I work for. If I purchase a new truck with that misc. income can I write-off the total payment for the truck plus interest, mileage, maintenance? Reply