I recived 1099 for two months. I was considered a consultant but did not have my own business. What do i do?

Question

New business
Began as a consultant being paid with at 1099
Made a little over $800.
Turbo tax thinks i have my own business.

Answer 1

Any 1099 wages over $600 annually are reported to the IRS, you must report this while doing your taxes. Since you were considered an independant contractor, these wages were not taxed. When you file you are going to be responsible for SS & Medicare, and depending on where you live, state and local income taxes. If you received a 1099, that means the employer has sent this also to the IRS, DO NOT THROW IT OUT! I wouldnt use Turbo Tax, H&R Block has an online free file service thats extremely helpful.

Answer 2

Whenever you receive a 1099 you are considered to be self employed as that income is not taxed up front. The 800 will hardly be taxable, throw them away and just file with your w-2

Answer 3

A 1099 for a consultant is considered to be self-employment income, whether you consider it to be having your own business or not. TurboTax is classifying it correctly.

Answer 4

you may not have had your own business, but when you receive a 1099 you are not considered to be an employee. you are considered self-employed and are responsible for paying self-employment tax on your income. you can report this income on Schedule C, and deduct any expenses you may have had that were not reimbursed.