1099 for spouse travel

[natiro]

Employee's spouse was given a 1099-Misc reporting the value of travel in box 7. This was for the value of travel for the spouse to accompany her husband on a business related trip. The spouse had no business related function during travel. Is this subject to self employment tax?

Thank you.

[Gretel]

Weird reporting. Should have been incl. is husband's W-2, box 1 only, I think. Or if 1099 then box 3.

[Matt Sova]

No SE

Line 21 with no SE tax. Wouldn't the spouses business related function be the same as personal, which is, of course, keeping her husband happy?

[Bees Knees]

I would say it should have been reported in box 3 of the 1099. It is not subject to SE tax because the spouse is not in the business of making money traveling with her husband.

Keep a file on this and use Batok, Tax Court Memo, Dec. 28, 1992 and Groetzinger, 7th Circuit, Aug. 21, 1985 as citations to back up the fact that temporary income from something not being carried on with continuity or regularity is not a trade or business.