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Old 03-27-2008, 10:25 AM
TaxGuru TaxGuru is offline
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Join Date: Jan 2007
Location: New Jersey, USA
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Where do you include 1099-Misc income on the tax return?

In general, the input of a singular 1099-Misc that is due to temporary services performed by you in which you have not sustained any elated expenses should be reported on From 1040 on Line 21, that is, Miscellaneous Income, subject to self-employment taxes.

Turbo Tax should have an option that allows you to choose whether or not this is 1099-Misc Income should be subject to self-employment (S/E) taxes. You should indicate that it is subject to S/E taxes.

Now, if you did incur any expenses with regard to the 1099-Misc income then you must report these expenses on a Schedule C, even if you do not have a formal business as such. These deductions will enable you to reduce your tax liability from the 1099-Misc income along with a reduced S/E Tax Liability. If the expenses are less than $5,000 you should consider to file a Schedule-C EZ as well, and the IRS does not require you to itemize these expenses.
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