How to I report income (from a 1099 MISC form) on my 1040?

Question

Essentially I have misc. income (classified) independent contractor from an odd job. The IRS website tells me to fill out a schedule 1040 C (or CEZ), then a Schedule SE for self employment tax, ok. I think I get that but the 1099MISC has only copies marked for state and recipient, how does the IRS know what I'm filing if there is nothing to attach to the 1040? Doesn't all income have to have documentation? -This is not the same as a 1099R.

Answer 1

What the IRS told you, schedule C or C-EZ and schedule S is correct. You don't have to send in copies of the 1099-misc to them. They do already have the info from the person who sent it to you, and can refer to that if they need to check anything. They'll at some point match up the filed returns against the paperwork they already have, and send you a bill for additional taxes if you don't list the amount on your return.

Answer 2

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 3

This income should flow to a Sch C so that you can deduct expenses you incurred in earning that income. It should then flow to Schedule SE as you will owe self employment tax on this income.

Answer 4

You don't need t attach a copy of this to your return.