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Old 02-08-2009, 10:49 AM
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Schedule C or 1040 line 21 - 1099-MISC

I thought I had my question answered but when I went to do my taxes the sight has a forum also - so I looked up my question and got a different answer. My question is: I recieved my first 1099-MISC and it will be the only one I get. The amount is over $600 and I have no expenses to claim. Can I put this on my 1040 form line 21 or do I have to do a schedule C? I'm really confused and I sure don't want to get audited.
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Old 02-08-2009, 11:55 AM
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Well, if you had any expenses in connection with the income that you received on your 1099-Misc, then your Tax Adviser would suggest that you enter this information on Schedule C and deduct those expenses that were directly associated with the 1099-Misc income. Thus, you are effectively lowering your taxable income earned from the 1099-Misc income, resulting in a lower tax liability.

If on the other hand, there were no expenses related to this income, then you should include this 1099-Misc income on Form 1040 Page 1 Line 21, as Miscellaneous Income subject to self-employment taxes. Thus, subjecting you to a higher income tax on the 1099-Misc income earned, as this income is going be subject to both regular tax rate and S/E tax.

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