Discussion:1099Misc
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Budrok@Aol.com (talk|edits) said: | 30 December 2005 |
| Client works for the railroad, In 2003' he received 36,000 on a 1099Misc. Form
Block 7 for Job Protection Insurance he received for being out of work. Should this be on the 1099 Misc. Block #3, so he would not have to pay SE Tax,because he isn't Self Employed. | |
JamesGRogersCPA (talk|edits) said: | December 31, 2005 |
| I recommend you enter the $36,000 on Form 1040, line 21, Other Income, and not treat it as Self-Empployment Taxable income since he's not self-employed. | |
Hubert Altman (talk|edits) said: | 31 December 2005 |
| If you don't put it on line 3 the irs most likely kick it out and send you a bill for s.s.It should not be on line 7. | |
| 31 December 2005 | |
| Put it on Line 21 with an explanation of what it is for so it is clear that the TP did not receive this as self-employment income. I have never had one of my returns questioned by the IRS when I include a statement that:
TP does not engage in self-employment on a consistant and continuous basis. The 1099Misc from XXXXX was for XXXXXXX anuenue | |
| 3 January 2006 | |
| I agree, Line 21 with no SS tax. If you get a CP2000 Anuenue's statement works great. It applies to many inconsistant and temporary incomes reported on 1099's. | |
Budrok@Aol.com (talk|edits) said: | 3 January 2006 |
| Thanks you guys for the information on my situation. | |
| 4 January 2006 | |
| I always try to get the issuer to correct the 1099 and reissue a new one. | |
| 4 January 2006 | |
| I agree with "MGomez". It's better to go to the source of the error and have it corrected.
It probably affects others and the taxpayer may receive something from the issuer again. Next time it will be correct from the start. | |
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