I am anticipating this question for 2016. If a church piano player has a 1099 misc with the money in box 3 as other income, their will not be a problem with putting that on line 21, correct? She is not in this business, and does not play anywhere else.
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No, I'm wrong. The 1099 misc would have money reported in box 7. It appears that the IRS will look for an SE, and they don't really care if the income is reported on line 21 or not, just as long as they have an SE. Is that right? -
If you think SE tax does apply, put it on Schedule C, not Line 21.
If you think SE tax does not apply, put it on Schedule C, subtract it out as an expense on Schedule C, then put it on Line 21.Comment
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Save time
Save time.Originally posted by Super Mom View Post
There is a very similar post on this subject posted in the past three weeks. Many reply posts addressed what you are posting and should provide good insight.
You can find it by doing a search.Always cite your source for support to defend your opinionComment
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if she does this with consistancy and continuously it is a Sch C business.Believe nothing you have not personally researched and verified.Comment
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Whos piano? Does she do this every sunday or was it once?Originally posted by Super Mom View Post
Churches piano, every week...
Lets be honest, it probably should have been W2 income and the church did it wrong.
It needs to be on a Sch C. If she doesnt like the SE tax, they need to put her on payroll.
ChrisComment
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I have one and it goes on Line 21 every year with a Schedule SE.Comment
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no expenses???Originally posted by TaxGuyBill View PostBelieve nothing you have not personally researched and verified.Comment
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nope no expenses---line 21 and SE makes the most sense to meOriginally posted by taxea View PostComment
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Because Sche C information is forwarded to the localities in my state for business license taxes. So unless it is a legitimate business for profit, we handle it this way. My client's sole income other than Social Security, is a 1099 for playing the organ at her church. She has done this for years, so it is considered self-employment income, but there are no expenses. And she does not do this anywhere else.Originally posted by TaxGuyBill View PostComment
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Oftentimes the path of least resistance and application of some common sense go a long way, don't they?"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Dealing with the reporting method used
I think the decision being made here is of the "choose your poison" type:
Behind Door #1 : Not generate a Schedule C + Schedule SE as is generally required for a Form 1099-MISC with an entry in box 7. . .and wait to get a notice from the IRS.
or
Behind Door #2: Prepare the return properly and deal with any "business license" issues.
ur
Behind Door #3: Hide it on line 21, then Door #1 opens, and then Door #2 follows with a "Me, too!!"
For my personal 2¢ worth, I would probably fill out a Schedule C-EZ + Schedule SE and then consider the matter closed.
FEComment
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I think the decision being made here is of the "choose your poison" type:
Behind Door #1 : Not generate a Schedule C + Schedule SE as is generally required for a Form 1099-MISC with an entry in box 7. . .and wait to get a notice from the IRS.
or
Behind Door #2: Prepare the return properly and deal with any "business license" issues.
ur
Behind Door #3: Hide it on line 21, then Door #1 opens, and then Door #2 follows with a "Me, too!!"
For my personal 2¢ worth, I would probably fill out a Schedule C-EZ + Schedule SE and then consider the matter closed.
FE
I 100% agree with this. At the end of the day.. the pianist is working for the church (assuming an every week thing and not a 1 time). The church is not withholding or matching SS/MED. Maybe the business license issue will bring up the real problem here.
ChrisComment
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Tell me under what circumstance a pianist should even ever be receiving a 1099 in the first place?!?
Churches piano
They told her when to come in to play (during sermon times)
Its not like shes bringing in her own piano and playing it when she wants.
ChrisComment
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