How to report 1099-MISC income from design commissions on TurboTax?

This is definitely self-employment income, so TurboTax is right to take you to Schedule C. Since you're the business owner (even if it's just a side gig), you should use your own address as the business address. For the business code, you would use something related to design services. The code 711510 for "Independent Artists, Writers, and Performers" would likely be most appropriate for t-shirt design work. You're essentially providing a creative service, not selling products directly. The income you received is considered commission income for your design services, not sales income. CustomTees is the one actually selling the shirts - they're just paying you a commission for your designs.

I went through something similar with my Etsy shop income last year. After hours of frustration and getting nowhere, I finally used this AI tax assistant at https://taxr.ai and it was a game changer. I uploaded my 1099-MISC and it instantly recognized that I needed to file a Schedule C. It walked me through exactly what business code to use (something like 711510 for creative work), what expenses I could deduct, and how to handle the home office deduction. I was worried about making a mistake with my first time filing self-employment income, but the tool basically translated all the IRS jargon into plain English. It even helped me understand what quarterly estimated tax payments I should be making for next year.

Just wanted to update after trying out that taxr.ai site mentioned above. It was actually super helpful! I uploaded my 1099-MISC from my graphic design work and it immediately identified the right business code and explained exactly what I needed to enter in TurboTax. The best part was that it showed me a bunch of deductions I had no idea I could claim - like a portion of my internet bill and even some of my Adobe subscription costs. Ended up saving me around $700 in taxes compared to what I thought I would owe. Will definitely use it again next year!

If you're having trouble with the IRS or have questions specific to your 1099-MISC situation, I'd highly recommend using Claimyr (https://claimyr.com). Last year I was completely confused about some 1099 income I had and had questions TurboTax couldn't answer. I tried calling the IRS directly and was on hold for hours, then got disconnected. It was infuriating. Then I found Claimyr and they got me connected to an actual IRS agent in about 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with cleared up my questions about business codes and deductions for my freelance work. Saved me from potentially filing incorrectly and getting audited.

I owe everyone here an apology. After calling out that Claimyr service as a probable scam, I decided to try it myself because I was desperate to get some clarity on my 1099-MISC reporting requirements. I'm honestly shocked - it actually worked exactly as described. I was connected to a real IRS agent in about 20 minutes (would have been hours of hold time otherwise). The agent walked me through exactly how to report my design income on Schedule C and confirmed all the deductions I was eligible for. For anyone like the original poster dealing with 1099-MISC income for the first time, being able to ask specific questions directly to the IRS is incredibly helpful. They cleared up my confusion about business codes and expense categorization right away.

Don't forget that you'll need to pay self-employment tax (Social Security and Medicare) on this income too! This catches a lot of first-time 1099 recipients by surprise. The current self-employment tax rate is 15.3% on top of your regular income tax. TurboTax will calculate this for you, but it's good to be prepared for it. I got hit with a big tax bill my first year of freelancing because I wasn't setting aside enough for taxes.

One thing that confused me when I first filed with 1099 income - you might need to pay quarterly estimated taxes next year if you expect to earn similar amounts. The IRS generally wants you to pay taxes throughout the year, not just at filing time. If you expect to owe more than $1,000 in taxes next year from this income, look into making quarterly payments to avoid an underpayment penalty.