Q&A: How do I report earning as a contract employee?

Question by WWDD: How do I report earning as a contract employee?
I was hired last may on a continuous contract and I am having a little trouble deciding how to report my earnings. I received a 1099-MISC form from my employer but when looking online it seems that there is not category that really describes my situation. For example it seems most of the options to report my income would include me having my own business, but I do not. I was hired by the company as a contract employee until they receive room in the budget to move me to permanent status. Can anyone suggest how I should report these earnings?

Best answer:

Answer by Mike W
Your “Employer” probably took the cheap, easy route with the 1099-MISC. See the following :
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

Now that you’re stuck with the 1099, you have to use Schedules C and SE, paying all your own SS and Medicare …

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