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Old 03-25-2016, 05:13 PM
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Misc Income as Attorney

I'm an attorney, and do some side work for my dad. He's also an attorney and is self-employed (LLC). He collects a fee for trusts, which I write. I do the work, he gives me half of the fee.. How do I file? I'm newly licensed, about a year. He charges $400 for a trust. I spend hours writing it, communicating with the customer, etc. I often meet with the customer, and provide notary services. The customer writes a check to my dad's firm. (LLC) My dad writes me a check for half, $200. I'm trying to figure out how to claim this income, and what deductions/expenses I can apply. This is really a service to help my dad grow his business, and I definitely do not make wages worthy of my services. Of course, all income will be filed, but how do I maximize the benefit?



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Old 03-25-2016, 08:35 PM
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I'm an attorney, and do some side work for my dad. He's also an attorney and is self-employed (LLC). He collects a fee for trusts, which I write. I do the work, he gives me half of the fee.. How do I file?===>Unless you are employed by your dad as his regular W2 employee, you need to file Sch C/SE as an independent contractor aslongas the amt on your SCh C line 29/31 is $400 or more than $400 and also need to file SCh SE aslongas the amt reported on SCh SE line 2/ 3 is also $400 or more than $400.

I'm newly licensed, about a year. He charges $400 for a trust. I spend hours writing it, communicating with the customer, etc. I often meet with the customer, and provide notary services. The customer writes a check to my dad's firm. (LLC) My dad writes me a check for half, $200. I'm trying to figure out how to claim this income, and what deductions/expenses I can apply. This is really a service to help my dad grow his business, and I definitely do not make wages worthy of my services. Of course, all income will be filed, but how do I maximize the benefit========>as mentioned above,unless you are hired as a regular W2 employee by your dad, you are a sort of subcontractor, I guess, in this particular situation your dad is a main contractor ; then, your dad needs to report the amt of the fee paid you on his SCh C line 11 and also needs to issue you a 1099MISC aslongas the ame paid you is $500 or more than $600 also your dad needs to send a copy of 1099MISC/form 1096 to the IRS.a subcontractor agreement may be needed to clear sign to the IRS/ your home state dept of revenue for taxation issue or etc.you basically can claim ONLY biz related expenses on your return;for example,you can claim biz related expenses such as utilities/auto expenses either actual or std mileage method/your tax filing fee/travel expense or mostly I guess 50% o fbiz related meals and entertainment expenses or etc as shown on your Sch C. plz refer to SCh C of 1040 here; https://www.irs.gov/pub/irs-pdf/f1040sc.pdf



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