It is Payment for Services Rendered
I'm with Rita on this one. I've seen people try to bail out of SE tax by claiming it is irregular, only to receive another 1099 in the following year.
"Work" can mess up a lot of things. People on disability working under the table will lose the disability if they report self-employment income. Retirees can face the social security penalty if they are under full-retirement age and make more than $15K.
I have to report stuff like this on a Schedule C. This often opens the door for deductions not available to W-2 employees, as well as the aforementioned SEHI. But we can't call a cow a pig.
I'm with Rita on this one. I've seen people try to bail out of SE tax by claiming it is irregular, only to receive another 1099 in the following year.
"Work" can mess up a lot of things. People on disability working under the table will lose the disability if they report self-employment income. Retirees can face the social security penalty if they are under full-retirement age and make more than $15K.
I have to report stuff like this on a Schedule C. This often opens the door for deductions not available to W-2 employees, as well as the aforementioned SEHI. But we can't call a cow a pig.
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