According to IRS Instructions for Forms 1099-MISC and 1099-NEC:

If you have received a Form 1099-MISC with an amount in Box 7 for Nonemployee Compensation, it is reported as self-employment income on Schedule C (Form 1040) Profit or Loss from Business.

If you have received a Form 1099-MISC with an amount in Box 7 but are not subject to self-employment tax, you need to enter a negative adjustment on Schedule SE (Form 1040) Self-Employment Tax after entering the income on Schedule C in the TaxAct^® program.

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click Income, then click Review next to Business income or loss (Includes Contractor/Freelancer income).
3. Click + Add Schedule C to create a new copy of the form, or click Edit to edit a form already created (desktop program: click Review instead of Edit).
4. Continue with the interview process until you reach the screen titled We need to know if received any of these for their [insert your business activity here] work in 2021, then click 1099-MISC.
5. Click + Add Form 1099-MISC or click Edit to edit a form already created (desktop program: click Review instead of Edit), then continue until you reach the screen titled 1099-MISC: Enter information on form.
6. Continue with the interview process until you reach the screen titled What schedule or form should the income from this Form 1099-MISC be reported on?, then click the dropdown below Assigned schedule or form, then click Schedule C.

If you have already entered the applicable Schedule C information:

1. From within your TaxAct return (Online or Desktop) click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click Form 1099-MISC, then click + Add Form 1099-MISC or click Edit to review a form already created, then continue until you reach the screen titled 1099-MISC: Enter information on form.
3. Click Switch to Form Entry (optional) near the top to open the Quick Entry window, enter all of the applicable information from your Form 1099-MISC, then click Save & Close.
4. On the screen titled What schedule or form should the income from this Form 1099-MISC be reported on?, select the "Schedule C" option you are currently completing from the Assigned schedule or form drop-down, then click Continue.

If this income (or part of this income) is exempt from Self-Employment Tax, follow these instructions to adjust the self-employment tax:

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click Taxes in the Federal Quick Q&A Topics menu to expand, then click Self-employment tax adjustments.
3. Continue with the interview process to enter all of the appropriate information.
4. On the screen titled Self-Employment Tax - Adjustments, enter the Other adjustments (+ or -) amount exempt as a negative adjustment, then click Continue.

According to the IRS 1099 MISC, Independent Contractors, and Self-Employed 2 FAQ webpage:

Question

My son is a newspaper carrier. I would like to know if this income is subject to social security and Medicare taxes, and if he must file a Schedule C.

Answer

As a newspaper carrier, your son may be a direct seller liable to pay self-employment tax. A direct seller is someone who satisfies the following conditions:

• The person is engaged in the trade or business of delivering or distributing newspapers or shopping news, including directly-related services such as soliciting customers and collecting receipts;
• Substantially all of the pay for these services (whether or not paid in cash) directly relates to sales or other output rather than to the number of hours worked; and
• The person performs these services under a written contract that states that the person won't be treated as an employee for federal tax purposes.

Self-employed persons, including direct sellers, report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Use Schedule SE (Form 1040), Self-Employment Tax if the net earnings from self-employment are $400 or more.

If your son isn't a direct seller (i.e., he doesn't satisfy the conditions above), he may still be liable to pay self-employment tax if he's engaged in a trade or business.

If your son isn't a direct seller and isn't engaged in a trade or business, he may be an employee whose wages are subject to income tax withholding, and social security and Medicare taxes.

If your son is your employee and is under 18 years of age, his income generally isn't subject to social security and Medicare taxes. If his income exceeds a threshold amount, he must report it as wages on Form 1040, U.S. Individual Income Tax Return.

For more information on the rules that apply to direct sellers and newspaper carriers and distributors, see Publication 334, Tax Guide for Small Business. For an explanation of the difference between an independent contractor and an employee, see Publication 1779, Independent Contractor or Employee PDF and Tax Topic 762, Independent Contractor vs. Employee.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.