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Old 02-18-2019, 04:03 PM
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Join Date: Feb 2018
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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).

My question:
Since I am not really trying to be a business,
is it OK to treat this income as "Other" instead of "Business"?



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Old 02-19-2019, 04:16 AM
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Join Date: Oct 2010
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sorry but I do not think so: since you have "Non-employee compensation reported on Box 7 of the1099-MISC, it is considered income from self-employment. You are considered to have a self-employed "business" and you are the "owner, so you need to file Sch C of 1040.aslongas the amton Sch C of 1040 is $400 or higher, then you need to file Sch C of 1040 and also aslongas the amt on line 2 / 3 is also $400 or higher on Sch SEof 1040, you must paySelf employment tax



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Old 02-20-2019, 02:12 AM
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Join Date: Oct 2010
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Quote:
Originally Posted by Wnhough View Post
sorry but I do not think so: since you have "Non-employee compensation reported on Box 7 of the1099-MISC, it is considered income from self-employment. You are considered to have a self-employed "business" and you are the "owner, so you need to file Sch C of 1040.aslongas the amton Sch C of 1040 is $400 or higher, then you need to file Sch C of 1040 and also aslongas the amt on line 2 / 3 is also $400 or higher on Sch SEof 1040, you must paySelf employment tax
rewritten.

so you need to file Sch C of 1040. aslongas the amt on Sch C of 1040 line


29/31

is $400 or higher, then you need to file Sch C of 1040 and also aslongas the

amt on line 2 / 3 is also $400 or higher on Sch SE of 1040, you must paySelf

employment tax



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