1099 MISC


M

Mike K

My wife has 3 occasional jobs as an independent contractor for
2 of which she received a 1099 MISC for non-employee
compensation.

If I'm reading correctly, they are not w-2's to be entered on
line 7 "Earned Income" on 1040. They need to be entered on
line 12 as "business income". Yes? No?

Thanks- MIKE
 
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H

Herb Smith

Mike said:
My wife has 3 occasional jobs as an independent contractor for
2 of which she received a 1099 MISC for non-employee
compensation.

If I'm reading correctly, they are not w-2's to be entered on
line 7 "Earned Income" on 1040. They need to be entered on
line 12 as "business income". Yes? No?
NO, they are reported (all three jobs) as gross proceeds on
Schedule C. After subtraction of business expenses, the net
flows to Line 12 of the 1040. Schedule SE may also be
needed if the net is greater than $400.
 
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P

Phil Marti

Mike K said:
My wife has 3 occasional jobs as an independent contractor for
2 of which she received a 1099 MISC for non-employee
compensation.

If I'm reading correctly, they are not w-2's to be entered on
line 7 "Earned Income" on 1040. They need to be entered on
line 12 as "business income". Yes? No?
No. That's self-employment, and it goes on Schedule C,
which flows to Schedule SE, where she computes
self-employment tax. The bottom lines of those forms tell
you what 1040 entries to make.

As for the third job, was there a W-2? If so, that does go
on line 7 of the 1040. If there was nothing, it's added to
Schedule C.
 
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R

Rich Carreiro

My wife has 3 occasional jobs as an independent contractor for
2 of which she received a 1099 MISC for non-employee
compensation.

If I'm reading correctly, they are not w-2's to be entered on
line 7 "Earned Income" on 1040. They need to be entered on
line 12 as "business income". Yes? No?
No.

They need to be entered on Schedule C (or C-EZ if eligible),
after which any legitimate business expenses are deducted to
arrive at her profit. That profit goes on Form 1040 line
12. That profit also goes into Schedule SE where the
self-employment tax on the profit is figured.

Also, she has to report the income from *all three* jobs,
not just the two who sent her a 1099-MISC.
 
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M

Missy

Mike said:
My wife has 3 occasional jobs as an independent contractor for
2 of which she received a 1099 MISC for non-employee
compensation.

If I'm reading correctly, they are not w-2's to be entered on
line 7 "Earned Income" on 1040. They need to be entered on
line 12 as "business income". Yes? No?
Mike, you should put it on Schedule C first and take any
expenses that she might be entitled to and then if the
bottom line is more that $430 she needs to file a Schedule
SE to pay self employment taxes. Plus the bottom line on
sched C goes on line 12. SE bottom line goes on line 58 of
1040 and 1/2 of that figure goes on front of 1040 under
adjustments to income.

Missy Doyle
 
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W

Wayne Rivers

Mike K said:
My wife has 3 occasional jobs as an independent contractor for
2 of which she received a 1099 MISC for non-employee
compensation.

If I'm reading correctly, they are not w-2's to be entered on
line 7 "Earned Income" on 1040. They need to be entered on
line 12 as "business income". Yes? No?
You should enter income from all 3 independent contractor
jobs as business income on Schedule C, NOT just the 2 you
receive 1099-MISCs for. Don't forget to claim her expenses
for doing this work (mileage, supplies, etc.)

Wayne Rivers, CPA
 
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