I have a client with a 1099-M---I automatically think Schedule C and SE when I see one of those. However, they listed the income in box 3 "other income", and that made me think. This was comp for in home care of this guy's aunt. He is not in the home health care business and is no longer taking care of her because she is in a nursing home. Thinking maybe this should be listed as "other income" and not on C subject to SE. He probably would have cared for his Aunt regardless of profits, however, I'm sure he needed some compensation for his time since he must live. Thoughts?
These payments came from her estate as she has a bad case of dementia.
These payments came from her estate as she has a bad case of dementia.
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