Questions & Answers

I am a contractor and do not have a business. How do I enter my 1099-MISC without entering a business?

Menu Path: Income > Business Income > Business Income (Schedule C)

The IRS considers consulting or contractor income as business income that needs to be entered on a Schedule C. If you have self-employment income from a 1099-MISC, which is the case with most Form 1099-MISCs, you'll need to report the income on Schedule C.

Add a business record. On the Basic Business Information screen, just enter a short description of the type of work you did for the business description. If you did consulting work, type in something like "business consultant" or "consulting service" for the business description. Select the business code that best describes the type of work you are doing. Select "Cash" as the type of accounting method used. All of the other questions usually can be left blank.

On the next screen, select the checkbox for the Form 1099-MISC income that relates to the Schedule C. The next screens will ask for business expenses, but if you do not have any, you can just keep going through those screens without entering anything. Your 1099-MISC income will then correctly show up on Schedule C and be subject to self-employment taxes.

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