1099-Misc

[Taxman]

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]

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.

[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.

[MAW TAX]

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

[Taxman]

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.

[ChEAr$]

there's the answer

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.

[Taxman]

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