Should 1099-Misc treated as business income

[Raj]

Hi
I'll be filing MFJ. I work as a full-time employee and not self-employed. My wife is a part-time employee. Along with this, for a few hours each week, she teaches a foreign language via a nonprofit org. Although she gets paid a small amount for teaching the language, she does it more as a hobby. She has been doing this since Sep 2008. She received a 1099-Misc from this nonprofit Org. When I put in her 1099-Misc income into Turbo-tax, it treated this as her 'Business income'. This kicked in the self-employment tax.
Should the 1099-Misc be treated as her business-income? How should it be handled instead?

Thanks
Raj

 

[timpgoetz]

1099 income is exactly that. 1099 income is income that was NOT paid as an employee, and thus is income being paid to a contractor. You've hear "the only things in life that are certain are Death and Taxes"? The government needs their FICA... and since there is no employer that paid FICA for this income, you need to pay it... as both the employee and the employer (ala self employment tax). Sorry.

- Tim Goetz

 

[Samir]

Yep, if you've got a 1099 for anything you worked, you got screwed. Better to be an employee and let the employer pay half of the employment taxes.

 

[infotaxsquare]

Hi,

Yes, 1099 Miscellaneous will be treated your regular income. You will report it on "Schedule-C"

Regards,

InfoTaxSquare.com

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