Where do I put income reported on a 1099-misc on the 1040?

Question

I am a security guard and my employer gave me a 1099-misc instead of a w-2. He did not take out any taxes during the year. Should this reported on line 7 of the w-2 as regular wages or should it be on line 12 with business income (which would mean a schedule c and self employment tax)?

Answer 1

yes, line 12 by using schedule c or cez

you will also use schedule se, and don't forget to enter 1/2 of your self-employment tax from schedule se (social security) on line 27 of form 1040 as a deduction to income.

Answer 2

Your income is probably shown in the "non-employee compensation" box of the 1099-misc. You'd report that amount on a schedule C or probably C-EZ, along with any eligible expenses. Use schedule SE to calculate self-employment tax. The numbers from the two schedules will transfer to your 1040.

Answer 3

If organization X, Y & Z are all in the same related field of work, then yes, you should accurately report ALL income earned from them whether a 1099-misc. is recieved by you or not. Sometimes it will actually serve you better to claim all Sch. C income and keep the expenses to a minimum. (there is nothing in tax law that states you must claim all of your expenses, just that you must claim all of your income). If you qualify for EIC (earned income credit) having a positive earning amount from Sch. C will pay some of your SE tax (you'll be paying into social security for yourself).

Answer 4

by giving you a 1099 intstead of a w2 , your employer is making you "your own business" and you will be taxed on this income. It will help if you itemize some of the materials you used in this job. ie car repairs, meals, parking, equipment, cell phones. This will lessen the amount that you will be taxed on.

Answer 5

Yep, line 12 it is.