1099-Misc

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  • Taxman
    Senior Member
    • Nov 2005
    • 111

    #1

    1099-Misc

    I have a client who received a 1099-misc for $3,000 in box 3 (other income) as part of a State program for working at a daycare facility. Should this amount be reprted on schedule C or line 21 of the 1040 under "Other Income"?
  • Gretel
    Senior Member
    • Jun 2005
    • 4008

    #2
    That depends if this work was done in his line of business or if it was a one time shot of doing something else. Latter would go on line 21.

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    • Taxman
      Senior Member
      • Nov 2005
      • 111

      #3
      The payment was based on a program to keep the client in the line of business as a daycare teacher and supplement her regular salary.

      Comment

      • MAW TAX
        Junior Member
        • Apr 2009
        • 17

        #4
        Wouldn't it go on Line 7 then?

        I'd have to refresh my memory.....(after so many years.....there is too much stuff in there....I always have to look things up to be sure. For some reason I was a lot smarter when I was a new Tax Pro than I am now......hmmmmmm......)

        MAW
        God Bless!
        M. A. Wigton
        Pacific NW

        Comment

        • Taxman
          Senior Member
          • Nov 2005
          • 111

          #5
          I'm not sure if its subject to self employment tax. It would be nice if the 1099-Misc instructions would tell you where to report it on the 1040.

          Comment

          • ChEAr$
            Senior Member
            • Dec 2005
            • 3872

            #6
            there's the answer

            Originally posted by Taxman
            The payment was based on a program to keep the client in the line of business as a daycare teacher and supplement her regular salary.
            right there, since you say "to keep client in THE LINE OF BUSINESS... meaning it's
            a continuing activity. Se tax, for sure.
            ChEAr$,
            Harlan Lunsford, EA n LA

            Comment

            • Taxman
              Senior Member
              • Nov 2005
              • 111

              #7
              thanks chEAr$ I have put it on schedule C. I believe that makes the most sense.

              Comment

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