Election Judge Compensation

[Koss]

Line 21, like jury duty?

Or Schedule C?

Facts:

(i) The total compensation was $108. The taxpayer is not operating a trade or business as an election judge.

(ii) The taxpayer is not attempting to claim any expenses associated with the income.

(iii) There is no other income that is subject to self-employment tax. The outcome will be the same whether we use Sch. C or Line 21. Even on Sch. C, there won't be any self-employment tax because it's under $400.00.

BMK

[Larmil]

Possibly Line 7?

Line 21, like jury duty?

Or Schedule C?

Facts:

(i) The total compensation was $108. The taxpayer is not operating a trade or business as an election judge.

(ii) The taxpayer is not attempting to claim any expenses associated with the income.

(iii) There is no other income that is subject to self-employment tax. The outcome will be the same whether we use Sch. C or Line 21. Even on Sch. C, there won't be an self-employment tax because it's under $400.00.

BMK

From the IRS website:

"Election Workers: Election workers are common-law employees; however, under IRC 3121b)(7)(F)(iv) an exception from FICA is provided for election officials and workers who earn less than a specified amount for a calendar year ($1,400 in 2008). This provision applies to employing entities that do not have a Section 218 Agreement.
If the employing entity has a Section 218 Agreement, the Agreement determines the treatment of election worker wages for social security tax. It may exclude election workers altogether from social security; it may specify a lower threshold at which social security tax is withheld; or it may provide no exclusion for election workers, in which case social security and Medicare taxes apply from the first dollar paid."

[erchess]

Agree with Lamil

It isn't Sch C because the guy is not operating a business and I don't think Line 21 is appropriate either because he is a common law employee. I have put on Line 21 before because I was told (wrongly it turned out) that the software I was using did not have a way to get it on line 7 without making the IRS think that I had a Form W2 when I did not. As far as I know there were no repercussions for client or firm but what I did wasn't strictly correct.