To report your self-employment income as common-law employee salaried income:
1) Delete your self-employment income entry
2) Select “Foreign Employment Compensation” on the Foreign and Other Income Section
3) Enter your self-employment income as salaried income on the “Foreign Employment Compensation” section when it pops up.
Keep in mind: You need to report your gross income and cannot deduct any business expenses.
Attention! If you receive a 1099-MISC or 1099-NEC, filing as a common-law employee may trigger the IRS to audit you and your employer. Instead, you should talk to your employer to determine if you should be getting a W-2 instead of 1099-MISC/1099-NEC. If your employer disagrees and you are confident you should be classified as a common-law employee, then:
- File Form SS-8 https://www.irs.gov/pub/irs-pdf/fss8.pdf with the IRS directly
- Request that Form 8919 be included in your Federal Tax Return at the Feedback Section to withhold your 1/2 of Social Security Taxes (you will need to be in the Professional Tier)
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