Client worked for candidate for state public office, a legislative representative. He was paid $7000 for working on the campaign, was not given a w-2 or a 1099. Is this SE income or other income. It was a one time deal. Never had one of these
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Campaign Worker
You said it was a "one time deal." If the taxpayer is not in the business of providing services to candidates, then you may be able to reasonably take the position that the income is not subject to self-employment tax, and simply report it on Line 21.
Did the client have significant expenses? To claim the expenses, he would have to put it on Schedule C, and pay self-employment tax on the net income.
He might have had lotsa mileage.
Somehow it doesn't surprise me that he didn't receive an information return. All political campaigns are corrupt and fiscally irresponsible. LOL
I'll bet the campaign ran out of money, and couldn't pay a qualified accountant to handle year-end tax matters.
BMKBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process.
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