Taxpayers who report earnings on Form 1099-MISC, Miscellaneous Income may be considered self-employed. Box 7 of Form 1099-MISC is used to report nonemployee compensation. These amounts should be reported on Schedule C-EZ, Net Profit from Business or Schedule C, Profit or Loss from Business. Net losses and profits are reported on line 12 of Form 1040.

	Some employers misclassify workers as independent contractors and report their earnings on Form 1099-MISC. Tell taxpayers who believe that they have been misclassified that they should contact the IRS.