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If you have a 1099 with nonemployee compensation, how is a single individual supposed to file it?

Jacksonville, FL |

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Attorney Answers 3


  1. I assume that you are the person who received the non-employee compensation. The business that paid you is treating you as an independent contractor (whether that is correct or not under the circumstances I can't tell you without further information). You must file Schedule C with your Form 1040 to report your earnings and any expenses, and Form SE for payment of self-employment tax. You may want to have a tax preparer assist you.


  2. You file your 1040 with a Schedule C or C-EZ. This gives you a great opportunity to take business deductions, Examples are cell phone, cable, vehicle, home office, computer, and internet expenses in addition to other business expenses.

    Get a professional tax preparer to help you.

    Ron Cappuccio
    www.TaxEsq.com

    If you do not like this answer or disagree, please look at one of the other answers provided. It is not necessary for you to try prove this answer is "wrong" or something with which you do not agree. This is a free service for you based on limited facts. Nevertheless, many times you need to consult an attorney with the details to get actual advice specific to your concerns. Do not put too many details in your questions or comments because this makes the information public and could hurt you. Government Regulations contained in IRS Circular 230 regulate written communications about Federal tax matters, including e-mail, between us and our clients. This is another attempt by the government to limit your rights and to extend the control of government over individuals and businesses. Nevertheless, such communications are either opinions or other written communications. This is not an opinion. It is other written communication and was not written to be relied upon, by itself, to avoid any tax penalties. In order to receive assurances of protection from tax penalties from a written communication, you should get an opinion letter. If you would like to discuss an opinion letter relating to any matter, please contact me and I will explain what is involved and what it will cost.


  3. First, I should point out that marital status has no effect on how to report income received on a 1099 form. All persons, single, married, HOH, should report 1099 non-employee compensation on their form 1040 by using Schedule C or Schedule F depending on their type of business. Then on Schedule C/F you will also have the ability to deduct any actual ordinary and necessary business expenses related to that business (for which the 1099 was received). The net on that schedule is then also subject self-employment (Social Security) tax of schedule SE. The net income from the schedule is then placed on the front of form 1040 where indicated, and the SE tax is entered in the taxes section and added to any income or other taxes payable.
    Because the income was reported to you as 1099 income, the payer did not consider you and employee and did not withhold social security or medicare taxes. Thus YOU end up paying all the social security and medicare taxes that may apply to that income. It does cost you more to be a non-employee, but you do have the ability to deduct any applicable expenses you incurred to earn that income.