All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎04-16-2018
Accepted Solution

Independent Contractor or Small Business?

I was in direct sales and I am also an online teacher. I have received a 1099-MISC for both, what are they considered? Are Independent Contractors and small business's one in the same?

H&R block automatically created a "Self-employment or business income (Schedule C)"  in the "My Income" tab. Is this supposed to happen? There is already the 1099-MISC form I created where all expenses and such are reported. If I delete one, will it delete the other?

 

Thanks for the help!

Samantha

Associate (Neighbor)
Posts: 212
Registered: ‎07-22-2014

Re: Independent Contractor or Small Business?

Hello, sjd715, and welcome to the community.

 

Form the viewpoint of the IRS, an independent contractor and a small business owner are the same - both are categorized as being self-employed.  Since you entered information from a 1099-MISC (I'm guessing with a number in box 7, non-employee income), the numbers from that would find their way to a Schedule C, so the program is doing the right thing by adding that form to your return.

 

Hope that helps clear things up for you!

 

-kurt

Pioneer
Posts: 2
Registered: ‎04-16-2018

Re: Independent Contractor or Small Business?

Thank you so much for the response. 

Council Member
Posts: 516
Registered: ‎04-06-2016

Re: Independent Contractor or Small Business?

Samantha,

 

To elaborate on KurtH's response, these sound like two different "jobs"/businesses so you should report them on two separate Schedule Cs.  One for the online teacher income with the expenses associated with that, and a second with the direct sales income and expenses associated with that.

 

Karen