Got 1099-MISC but I'm not self-employed - how to handle this for taxes?

Oh thank you! That's really helpful! So when TaxAct is trying to push me to the premium version, I should just look for the "Other Income" section instead of the self-employment section? I was worried I'd be forced to upgrade just to enter a 1099-MISC at all. Do I need to provide any additional documentation or just the amount and who it came from? And will I still get the full standard deduction or does this somehow affect that?

You're right - most tax software will try to push you to premium versions, but you can usually find the "Other Income" section in the basic versions. When entering the information, just input the payer's name, their EIN (from the 1099-MISC), and the amount as "Other Income." You don't need to provide additional documentation beyond keeping the 1099-MISC in your records. The IRS already receives a copy from the payer. This income won't affect your standard deduction at all - you'll still get the full amount. The additional income will just be added to your total taxable income and taxed at your marginal tax rate.

Does it work with all tax forms or just 1099s? I've got a weird mix of documents this year including some investment stuff and I'm trying not to pay a fortune to file.

I'm a little skeptical about using some random website with my tax info. How secure is it and how do you know the advice is correct? Did it actually file for you or just tell you what to do?

It handles pretty much all tax forms - W-2s, all types of 1099s, investment documents, and even more complex forms. I had a 1099-MISC like the original poster, but my wife also had investment documents, and it handled everything accurately. The service doesn't actually file your taxes - it analyzes your documents and tells you exactly what to do, so you still use your regular filing method. It's secure with bank-level encryption, and all advice is based on IRS guidelines. I was skeptical too, but their explanation cited specific IRS rules about why my payment didn't qualify as self-employment income, which matched what my accountant friend later confirmed.

How does this actually work? Do they just call for you or something? I don't understand how a third party can get you through the IRS phone system faster.

Yeah right. Nothing gets you through to the IRS faster. They're deliberately understaffed. Sounds like some scam to collect your personal info or money. Did you have to pay for this "service"?

They use an automated system that navigates the IRS phone tree and waits on hold for you. When an actual agent picks up, you get a call to connect with them. It's like having someone wait in line for you. No scam at all - they don't collect any tax information from you. They just need your phone number to call you when an agent is on the line. I was skeptical too, but it worked exactly as advertised. The system called me when an IRS representative was on the line, and I was able to get my question answered without spending hours on hold.

That's a good point I hadn't thought about! The pharma company has my old address actually since I moved in June. Will this cause problems? Should I contact them for a corrected form or is there a way to note this on my return?

You don't necessarily need to get a corrected form. When you enter the 1099-MISC information on your tax return, you'll just use the exact information that's on the form including the payer's EIN number. The IRS matching system is primarily looking at the amounts and the taxpayer identification numbers to match things up. Just make sure your current address is correct on your actual tax return. If you're worried, you can keep a copy of the 1099-MISC with your tax records in case there are any questions later. The mismatch happened to me because I made a typo in the amount, not because of the address difference.

FreeTaxUSA is the way to go! I switched to them after years of TurboTax increasing their prices. Their free version handles all federal forms and I just pay $15 for state filing. Way better than the $100+ other services want.