Question by hanktrolle: If my employer gave me a 1099 form, do I have to file my taxes as a small business?
I am trying to chose which package I need for Tax Act and I don’t know if I am considered a small business, or if I can just use the regular package.
Best answer:
Answer by WRG
No unless you had business expenses then you can use the lower versions.
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you file your taxes as self employed. You cannot file as a small business unless you have an employer ID number (EIN) but it will still be filed as business taxes just not classified as a small business. you should use the form schedule C
you need an individual federal form 1040. you will report the amount in box 7 on the 1099 (non employee compensation) as gross receipts/sales on a Schedule C and use any expenses that apply to your “small business” to lower your SE tax.
Well, what the previous answer said about needing an EIN is not necessarily true. You can be a “small business” without having an EIN – you would just use your Social Security number. You’re only required to have an EIN if you pay employees.
Regarding your main question, my first thought is why did your employee give you a 1099? 1099s are given to independent contractors, not employees. What do you do for a living? If you really are a contractor, you should have some expenses to offset whatever income you made. Then you would claim the income & expenses on Schedule C.