Hired as Truckdriver - Self-Employed?

[zeros]

Client is retired but on occasions, they call him to drive a truck and deliver some goods to a different area. He received a 1099 for $4500. Could this be considered odd jobs (report on line 21) and not pay self-employment taxes?

[ToledoEd]

No, it would be a Schedule C all the way. Definetly Self Employment.

There is no odd jobs that do not cause SE Tax, unless it is under $400 net.

[AJsTax]

not true in any fashion

No, it would be a Schedule C all the way. Definetly Self Employment.

There is no odd jobs that do not cause SE Tax, unless it is under $400 net.

Tax law and court ruling disagree with you on that one.

to the OP, if he is doing this on somewhat regular or continuing basis, it is Sch C. if he only does it once or twice it is not a business and is NOT permitted to be reported on a Sch C. the downside is not being able to take expenses like can on a C.

[ChEAr$]

And to top it all, if he was simply driving their trucks, he should be treated as a common law employee.

[JON]

AJs

version still includes SE tax??????????

[Nashville]

Does Not Include SE

AJs version does not include Self-Employment Tax with the rulings. It is possible to incur a 1099-MISC without the implication of self-employment income.

It would have been more clear-cut if the courts had decided in the other direction. The possibility of Line 21 income from a 1099-MISC now makes it possible to forge an argument by someone who simply wants to bail out of SE tax. Situations rather obvious are now being obscured by the old "Beauty is in the Eye of the Beholder" argument. (Translation: "What makes YOU think this income isn't casual enough??")

The Truck Driver from the OP clearly does not qualify for this. In fact, unless this guy was driving his own truck, furnishing his own insurance, incurring risk, etc. I believe he is receiving this 1099 from a company who simply wants to avoid putting him on payroll.

We get put in a position sometimes of being judge and jury, and in general most of us do not like it. However, on something this obvious we don't need to waffle around and just know the devil when we see him.

"As surely as water will wet us, and surely as fire will burn
The Gods of the Copybook Headings with Terror and Slaughter Return!" - Kipling

[AJsTax]

version still includes SE tax??????????

As in the my first post, if he is doing this on a continuing and regular basis, then yes, he shold be subject to SE taxes.
If he only does it a couple times it can be considered hobby income and report the income, but basically none of the expenses.
This is a judgement call, and yes the employer is probably cheating , as do so many trucking companies. See the Penroe case for an example.
You have to go with what you and the client is comfortable with. One reason the IRS is willing to push some of those cases to line 21 is that you can not take expenses or some of the other credits against that income.