An independent contractor or self-employed individual should report income on Schedule C Profit or Loss From Business. You may need to file other schedules and forms, including Schedule SE for self-employment tax on income from a trade or business. You must report all income, even if you did not receive a Form 1099-MISC. See the IRS Instructions for Schedule C for more information.
To enter or edit Schedule C information:
- From within your TaxAct® return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Business Income in the Federal Quick Q&A Topics menu to expand the category, then click Business income or loss from a sole proprietorship
- Click +Add Federal Schedule C to create a new copy of Schedule C, or click Review to view or modify a previously created schedule
- The program will proceed with the interview questions for you to enter or review the appropriate information
If you received a Form 1099-MISC instead of a 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. You are treated as an independent contractor for tax purposes, and this income is considered self-employment income. See the IRS 1099-MISC FAQ and the recipient instructions on IRS Form 1099-MISC for more information.
To enter or edit information reported to you on Form 1099-MISC, Box 7:
- From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Form 1099-MISC in the Federal Quick Q&A Topics menu to expand the category, 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
If you are not sure whether you are an independent contractor or an employee, see Employee or Independent Contractor.