Help! Need help with putting a 1099 into tax return using H&R Block?

Question

I am having a bit of a problem. My husband worked for a contractor for a few weeks over the summer and we received a 1099-Misc. for the cash that he was paid. I am trying to do my taxes through H&R Block's website. When I go to where you enter 1099-Misc. information, it has a bunch of questions to answer, it is asking my about owing our own business and what accounting method we used for our business. But we do not or did not own our own business. How do I go about doing this??? How do I answer these things when they don't actually pertain to us?

Answer 1

You will need to tell the software you had a business.
More or less self-employed even if working for another.
You used cash accounting.
You may be able to use Schedule CEZ and you will be doing form SE to pay self-employment tax besides regular income tax.

Answer 2

If your husband has any expenses against the income you want to file a Schedule C, which means you operated a business. If there are no expenses go to the section for other income and just enter the amount as other income subject to self employment tax. This is not in the 1099 section just the other income section and they won't ask those questions.
If there are expenses against the income you answer the questions; you use a cash method of accounting, you operate your own business etc. Just answer the questions the best you can.

Answer 3

When he did that independent contracting stint, he became a business owner. Those questions DO apply to you! You're on the cash accounting method, by the way.

Walk though the program and it will take you through preparing Schedule C or C-EZ to calculate the net profit from the business activity and Schedule SE to calculate the Self Employment tax on the profit.