Dr's income

[MelanieCPA]

Medical Dr is paid on a W-2. Also does medical case reviews and receives 1099's which I put on a Sch C. In the past he's done minimal speaking engagements for maybe 1 - 1500, and I've listed them on p1 of 1040 as other income and not paid self-employment tax on it. This year his talks/lectures income is almost 20K. Should this be reported on a Sch C? A separate one from the medical case reviews? Thanks.

[Koss]

Speaking Engagement

First, you need to educate your client. He's talking too much. If he would shut up every now and then, he would not have to pay self-employment tax.

LMAO

The dollar amount by itself is not the dispositive factor. But I tend to agree that when the activity becomes more than an occasional side job, it may turn into a business activity.

I am not convinced that it needs to go on a separate Schedule C.

What activity code are you using on his Schedule C for "case reviews"?

What exactly is a "case review," anyway?

Sounds to me like he's a consultant to other doctors.

When he does a speaking engagement, who is he speaking to?

Probably other doctors.

He's an expert in a particular area of medicine, and he gets paid, as an independent contractor, to share his expertise with other physicians. That's consulting. Whether it's one-on-one or in a lecture hall.

[Gary]

My son, the doctor

does speak to groups. He receives a 1099-misc so we file schedule C. He uses code 541990, "all other professional, scientific, & technical services". Why would your client not pay self-employment tax? If he's like my son, his wages are high enough that he only pays medicare.

[JCH]

There's a benefit to putting it on Schedule C. Your client can deduct expenses related to the consulting income.

[MelanieCPA]

Thanks...

this helps clarify my thinking. His medical case reviews are done for insurance companies. I'm not sure exactly who he's speaking to, but will find out. On his main
W-2, he does not pay SS, so he will still be subject to it on his SE income. Thanks again.

[fliszt]

My wife is also a Dr

and does extensive speaking engagements here in the US as well as Europe. I file a schedule C for her. (right or wrong)

[Bees Knees]

The dollar amount by itself is not the dispositive factor. But I tend to agree that when the activity becomes more than an occasional side job, it may turn into a business activity.

The frequency of the side job issue is irrelevant. You could have a one time side job and still be considered a trade or business. The determining factor is whether you are in the same trade or business as that side job.

For example, a medical doctor gets paid a W-2. He does a one time side job speaking engagement where he talks about an issue related to the medical field. He has never been paid as a speaker in the past, and claims he will never do it again. Since he is in the trade or business of providing medical services, this one time side job is a business. On the other hand, if he has a one time side job where he helps a friend clean windows for money, the one time side job would not be a trade or business because he is not in the trade or business of cleaning windows.

It’s not the dollar amount, or the frequency of the side job. It has to do with whether he is in the same profession as the side job.

[gkaiseril]

Retirement

Even if this doctor is paid on aW-2 and maxed out on his 401(k)/403(b) or other plan, the doctor is eligable to have a paln based on his SE activity and deduct is expenses which could also include a home office for this activity since his employer would not want him moonlighting on his dime.

[Bees Knees]

The only court case I know of that ever addressed this issue is found on page 5-23 of TTB:

Court Case: The courts have ruled that an activity subject to SE tax must
be regular and continuous. A taxpayer was not liable for SE tax for doing
a one-time window installation job where he had never performed
that kind of service before, nor did he ever again at any time thereafter.
(Batok, Tax Court Memo, Dec. 28, 1992)

1. That court case was highly controversial. Have fun ever winning something like that again.

2. The reason the taxpayer won is because “he had never performed that kind of service before, nor did he ever again at any time thereafter.”

Notice the regular and continuous factor is associated with the kind of work performed. It’s not about how you are paid, or who you work for, such as receiving a one time 1099-Misc from a temporary job when you normally get a W-2 from a regular employer.