Discussion:Avoiding SE Tax on a 1099-Misc
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Avoiding SE Tax on a 1099-Misc
| 14 April 2006 | |
| I always assumed that if you received a 1099-Misc, nonemployee compensation, that you file a Schedule C and pay SE Tax. However, my CCH preparation and planning guide made me think differently: "Individuals are considered to be self-employed only if they carry on theit trade, business, or occupation with the intention of making a profit, and with a reasonable degree of regularity. Thus an individual who occasionally makes a speech for a fee and a college professor who writes a book that he or she does not plan to revise are not held to be subject to self-employment."
With that in mind, I have a client who was an employee at a job for several years, left the job to move to a new state, and her old employer paid her $5k on a 1099-Misc for some work after she left. She called it consulting. But if it was for a month of work, and she has a new W-2 job, and is not pursuing "consulting" regulary, can she maybe not pay SE tax? This seems to happen all the time- someone getting one random 1099-misc in the middle of years of W-2's. Is anyone reporting these on Scehedule C and not doing SE Tax. Or is anyone putting it on line 7 wages or Line 21 Other Income? Thanks for your time. | |
| 14 April 2006 | |
| In this case, I would put it on Sch C and pay the SE tax. | |
To join in on this discussion, you must first
log in.
