Frequently Asked Questions - Keyword: 1099-MISC
Frequently Asked Tax Questions And Answers
Keyword: 1099-MISC
4.3 Interest/Dividends/Other Types of Income: 1099–MISC, Independent Contractors, and Self-employed
I received a Form 1099-MISC instead of a Form W-2. I'm not self-employed, I do not have a business. How do I report this income?
If payment for services you provided is listed in box 7 of Form 1099-MISC (PDF), you are being treated as a self-employed worker, also referred to as an independent contractor. You do not necessarily have to "have a business," but simply perform services as a nonemployee to have your compensation treated this way. The payer has determined that an employer-employee relationship does not exist in your case. That determination is complex, but is essentially made by examining the right to control how, when, and where you perform those services. It is not based on how you are paid, how often you are paid, nor whether you work part-time or full-time. There are three basic areas that are relevant to determine employment status:
* behavioral control,
* financial control, and
* relationship of the parties
DEDUCTIONS HAVE JUST TAKEN ON A WHOLE NEW MEANING.
WE WILL HELP YOU TO TAKE EVERY EXPENSE AGAINST THIS INCOME ALLOWED TO REDUCE THE TAX CONSEQUENCES IT PRODUCES.
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