Work Training Program

[RLymanC]

Have a 1099-MISC Box 7 income that was earned under a therapeutic work training program that is not subject to self-employment tax according to IRS.

Question: What is the best way to eliminate the SE tax on the return so the IRS will understand why?

[jainen]

Line 21

Report the income on Line 21. That is the place for non-business activity.

[RLymanC]

Thanks

Will do and include the Rev. ruling number 65-165

[Chief]

Misc income

That's wise.

[NCTaxPro]

Eic

I know that pursuant to Rev. Ruling 65-165 this income from state sponsored work training programs is not subject to SE Tax. Is it considered earned income for purposes of the earned income credit?