If you received a Form 1099-MISC instead of a Form W-2, the payer of your income did not consider you an employee and did not withhold income tax or Social Security and Medicare tax. This income is considered self-employment income and you must complete Schedule C (or Schedule F) and Schedule SE.
To enter or review the information from Form 1099-MISC, Box 7 Nonemployee Compensation:
- From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
- Click Form 1099-MISC to expand the category and then click 7-Nonemployee compensation
- On the screen titled Federal Q&A - Form 1099-MISC, Box 7, select which schedule you will use and click Continue.
- Schedule C is for Business Profit or Loss
- Schedule F is for Farming Profit or Loss
- The program will proceed with the interview questions for you to enter the information for your business
You do not necessarily have to "have a business" to be treated as a self-employed worker. Simply performing services as a non-employee can be enough to create this tax treatment. See Employee or Independent Contractor for more information on this determination.