Student 1099-Misc

[JohnH]

You can't just do the 8919 & forget about it - there's also the SS-8 to be prepared. And those questions need to be answered by the client, so that means a special interview.

If all it involved were filling out a sheet of paper you'd be OK, but given all the potential fallout I suspect that after doing a few of these you'll probably decide $10 just won't cut it. The last one I prepared (back when we used the form 4xxx and the SS-8), occupied so much time & effort that I wished I'd charged them $200, especially after the client wimped out and told the employer to call me to explain what we'd done.

It isn't a good idea to give away your time.
It's also unprofitable.

[Gretel]

Thanks for all the replies. I wasn't even aware yet that form SS-8 also has to be filed. Even for a student, I definitely would charge $100 for this, so, yes it is a good point to just have him pay the full share of SE for this small amount.

[AJsTax]

You are

so right. I agree with you. It is so hard in this area to charge a reasonable rate and still make a fair living wage for our time. We try to charge by the time involved, not be the form.
The average household income in the town I live by (outside it) is under $30,000 a year. This is not the area for $150 returns. get laughed right out of the room if we talk about 200 or 300 for a return.
But that is way off the subject.
So often the cost of the extra paper work and the fallout after makes it totally unreasonable to file the forms to force the employer to pay their fair share. The instructions for Sch C are quite plain, only file if you are in the trade or business on a regular business. Yes, if an employee then you would have to pay the taxes. I would take the route that provides the best outcome for the client. If the SCh C and the higher standard deduction means less cost than showing it as unearned income then that is the better route. Does IRS really care along as the income is reported and you have some basis for your decisions?? Not likely, we are only talking $2000 here and the extra taxes are not a material amount.
I do not think there is a wrong way as long as it is reported and the taxes are paid in some manner, if owed.