Form 1099-MISC - Nonqualified Deferred Compensation

If you received a Form 1099-MISC instead of a Form W-2, the income you received is considered nonemployee compensation or self-employment income.

Self-employed status means that the company or individual you worked for didn’t withhold income tax or Social Security and Medicare tax. As a result, you’ll need to complete Schedule C (or Schedule F) and Schedule SE.

To enter or review the information from Form 1099-MISC, Box 7 Nonemployee Compensation:

  1. From within your TaxAct® return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
  2. Click Form 1099-MISC in the Federal Quick Q&A Topics menu.
  3. Click +Add Form 1099-MISC to create a new Form 1099-MISC
  4. Click Form 1099-MISC Quick Entry to open the Quick Entry window
  5. Enter all of the applicable information from your Form 1099-MISC
  6. Close the Quick Entry window
  7. Assign the Form 1099-MISC that you just entered to the applicable Schedule from the Assigned schedule or form  drop-down list

Determining self-employed status:

You don’t have to be a business owner to be treated as a self-employed worker. Simply performing services as a nonemployee can be enough to create this tax treatment

See Employee or Independent Contractor for more information.

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