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Old 12-22-2016, 05:31 PM
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Categorizing "OTHER" INCOME

I am not an employee of any company, nor am I self-employed.

I did some work (some website help and a few property management-type things) to help out a friend (an individual not a company or employer) at varying times this year. I helped him out by doing some of his tasks here at home while he was out of the country a few times during the year. This individual already paid me for what I did early in the year and now wants to pay me for subsequent help I gave. The total for the year will be around $11,000.

Two questions:

1) Where does this income go on my 1040 tax return? Is it considered "regular" income to be put on Line 7 for Wages, salaries, tips? OR, does it go on Line 21 as "Other" income (in which case, what type? Fees for Services? Or what?) I don't know how to categorize it. It wasn't a "job", I wasn't consistently "employed." It was work I did 4 or 5 times over 2016. And I'm not self-employed so it's not something I do for a living.

2) Since this is an individual and not an employer or company, would he still be required to produce a 1099? I thought that was just for companies. This is a friend I did some work for a few times this year.

Thanks.



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Old 12-23-2016, 11:28 AM
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Join Date: Oct 2010
Posts: 4,801
1) Where does this income go on my 1040 tax return? Is it considered "regular" income to be put on Line 7 for Wages, salaries, tips? OR, does it go on Line 21 as "Other" income (in which case, what type? Fees for Services? Or what?) I don't know how to categorize it. It wasn't a "job", I wasn't consistently "employed." It was work I did 4 or 5 times over 2016. And I'm not self-employed so it's not something I do for a living.====>It is not regular W2 income UNLES you are a regular employee and he is a regular employer and also UNLESS FICA taxes are withheld from your paycheck. You must include on your return income from an activity from which you do not expect to make a profit. An example of this type of activity is a hobby it should go on Line 21 as "Other" income You must report on your tax return the income you earn from a hobby. Deductions for expenses related to the activity are limited. They cannot total more than the income you report and can be taken only if you itemize deductions on Schedule A (Form 1040).

2) Since this is an individual and not an employer or company, would he still be required to produce a 1099? I thought that was just for companies. This is a friend I did some work for a few times this year.====>No aslongas it is your hobby income and unless the activity is engaged in for profit; An activity is presumed for profit if it makes a profit in at least three of the last five tax years, including the current year
As mentioned above



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