Line 21 or Sch C

[anytaxpayer]

I've asked this question on a few other boards and can't get a definitive answer. Perhaps you all can help.

I have a client who judges a milk contest one day out of the year and receives $800 for it. It is reported to her on a 1099 MISC in box 7. This is not her job; she has a regular W-2 job. Should she report this on line 21 or Sch C.

For all the elists out there, I'm a 6 year tax preparer who is going out on my own this year. I have bought TAXBOOK.

[gkaiseril]

Not a One Time Occurance

I doubt you will find a definitive answer. There have been some tax court cases where an irregular or occasional side job has been found not to be subject to SE tax. But if you or your client this stand your client would have to contest the IRS challenge. Look at the additional tax and the cost and time of the challenge and make a choice.