I was named to a State Commission by the Governor and I receieved income from my service. I have received a 1099-Misc from the State and going through Turbo Tax it is suggesting that it be considered "self-employment" because I will remain on the commission for years. Is this self-employment (I have a regular job) or "other?" The income is reported in Box 7 - Nonemployee compensation.

I just filled my tax return out last night and I had the same thing. I have my full-time job, my Marine Corps Reserve income and then a 1099 for consulting work. It advised me the same thing.

You can still be self-employed while having a full-time job.

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Originally Posted by Dbl0Don

I was named to a State Commission by the Governor and I receieved income from my service. I have received a 1099-Misc from the State and going through Turbo Tax it is suggesting that it be considered "self-employment" because I will remain on the commission for years. Is this self-employment (I have a regular job) or "other?" The income is reported in Box 7 - Nonemployee compensation.

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1099-misc (nonemployee compensation) income: You are self employed or independent contractor. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040).

Even though schedule C treats you as a self employed, which may not be correct for you, this is how you report this income. Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

With 1099-misc you will end up paying about 7.2% more taxes as compared to W-2 employee. The benefit is that with 1099-misc you can deduct your business related expenses on schedule C or C-EZ whereas a W-2 employee you can deduct it only as itemized deduction subject to 2% AGI limit.