1099-Misc Business vs Other Income
I am retired and normally do no work for pay.
In 2018 I contracted with a friend's company to do a web page for them.
This is taxable in the state of Texas (where I live),
but there is an exemption for "Occasional" sales of 1 or 2 items per 12 month period.
I did not setup a business or collect sales tax.
I do not claim to be a business, and I do not solicit other clients.
This was a one-time project for a friend.
The company sent me (and the IRS) a 1099-MISC for the amount they paid me, in box 7 for Nonemployee compensation.
The tax software I am using wants to treat this as Business Income, with Schedule C. There are no expenses associated with this income.
If I treat this as "Other Income" on line 21 of the 1040 form, I pay less taxes on it (because of my other income and deductions).
Since I am not really trying to be a business,
is it OK to treat this income as "Other" instead of "Business"?