I have a client who's company gave him money towards his closing costs on his house. They then issued him a 1099 misc at the end of the year. I know this flows through to a Schedule C as other income but I am not sure what to fill in for the other parts since he is not a small business owner or consultant. Please advise. Thanks.
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What box is filled in?
Box 3 Other Income should be where this income is reported. It is line 21 not subject to SE tax. This would not go on a schedule C.
If it is in Box 7 (and I think I am reading your post correctly) then he should have his employer correct the 1099.I would put a favorite quote in here, but it would get me banned from the board.
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