What if my income is not self-employment income?

If you have a 1099-MISC that is not self-employment income subject to self-employment taxes, you need to enter the income in Box 3 of the 1099-MISC instead of Box 7. If your income is not self-employment income, you do not need to use Schedule C to report business income. Instead, the 1099-MISC income will go onto Line 21 of the Form 1040 as Other Income that is only subject to regular tax and not subject to self-employment taxes.

However, you should have the payer reissue another 1099-MISC to you and have the amount put in Box 3 of the 1099-MISC as Other Income instead of Box 7 as Nonemployee Compensation. Otherwise the IRS will expect you to report the Box 7 nonemployee compensation on Schedule C or Schedule F and pay self-employment taxes on it.

Trusted Company

14 Million Returns Filed

As an authorized IRS e-file provider, FreeTaxUSA® has e-filed over 14 million returns!

Best Value

File your federal taxes for FREE.
Add a state return for only $12.95.
Get the best value online!

Fast Refund

Get the fastest refund possible!

FreeTaxUSA provides the fastest way to get your refund when you use IRS e-file and direct deposit.

100% Accuracy

Our site checks for errors or problems before you send your tax return to the IRS. We guarantee the calculations in our software will be 100% accurate.

© 2002-2015 FreeTaxUSA, a TaxHawk, Inc. owned and operated website - Terms of Use