<p>Yes, those pesky 1099s!
As the turbotaxer in our family of musician husband and now musician son, they are a pain.</p>
<p>I agree, much ado about $20 in your case. I would not pursue schedule C for that amount no matter what Hal says.
But TT does do a decent job of simple schedule Cs when you have multiple 1099s.
And, you can enter expenses against that income as well. Just keep all your documentation.</p>
<p>That said, the move in our house has been toward W2s for jobs that used to be paid as ‘independent contractor’ 1099 jobs. Makes it much easier.</p>
<p>Why a 1099 for $20? Federal guidelines say that a 1099 should only be filed for those individuals to whom you paid more than $600. We have several independent contractors, but most have received under $600. In those cases, we do not issue 1099’s. Am I doing something wrong?</p>
<p>When the IRS receives the Form 1096 from the issuer of 1099’s for under $600, what happens? I would assume that those would be matched to the individual 1099’s even though they weren’t necessary to issue…(?)</p>
<p>Digmedia: You are correct in the reporting requirement for independent contractors. But this 1099 was for royalties.</p>
<p>Again…royalties are not self employment income. They go on schedule E and are not subject to self employment tax. I suppose you could put them on line 21, but the IRS is going to look for it on sch E. It would be like putting $20 of interest on line 21. May have matching problems. </p>