I'm not engaged in a trade or business, therefore no SE tax please

[veritas]

That is exactly what I am saying.

Sure they could. But it wouldn't be what was reported, now would it? Or are you saying filing a false 1096 to go with it? & signing & all?

Lets see...forgery, filing false documents, what else?

It is a potential area for abuse. Very unlikely it would be discovered and hard to pin on anyone.

[JON]

Hobby income

goes on line 21 with expenses to 1040 Sch A Misc Itemized deduction. Hobby income gross or net(assume income) is it subject to SE Tax??? If so is it gross(ca not be) or net, which usually brings income to 0. In this case with a 1099 it obviously makes it harder. I think hobby income is not SE-but have never seen it...

[Lion]

Hobby

If it's hobby income, no SE tax. Income less COGS on line 21, expenses on shedule A 2%. If business, SE tax. But, deductions on schedule C to reduce profits before putting on 1040, before computing SE tax, etc. Possible negative number on 1040 reducing other sources of income. And, NOLs possible to carry back &/or forward. I'm a little sleep-deprived so not sure if this is written right or clearly.

[taxea]

I'm not engaged in a trade or business, therefore no SE tax please

i would err on the side of the client and put it on a Sch C if the 1099 income exceeds the expenses by 400. I don't see how I could justify to the IRS that the issued 1099/s did not constitute business income if engaged in regularly and consistantly which still doesn't mean it has to be full time. taxea