Discussion:Qualfied Performing Artists and Unreported Income

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Discussion Forum Index --> Tax Questions --> Qualfied Performing Artists and Unreported Income

TheTinCook (talk|edits) said:

15 April 2009
My client had a handfull of small acting and modeling jobs and otherwise qualfies for the QPA adjustment, but the income (often cash) was not reported to the IRS by the payer on either 1099 or w-2. The client does not meet the requirements for IC.

I'm thinking the proper procedure would be to stick that income on line 7 with the rest of the wages and do the QPA adjustment with the 2106 as normal. I'm guessing that the income should also be picked up on a 8919 for uncollected FICA, but we don't have all the information needed for the form.

Or I guess I could just stick it as "other income," but that seems less correct.

TheTinCook (talk|edits) said:

15 April 2009
Went with the first option.

Client couldn't remember the identity of the employers. Small time fly-by-nighters, I guess. I've got an entry on the 8919 with a bunch of "unknowns" on it. Small bill for the additional FICA. Client freaked out when she saw the FICA limit on the form. I had to explain to the they weren't getting taxed on $102,000.

Taxea (talk|edits) said:

16 April 2009
As long as the client reports the income, which she has to. I would put in on line 21 and link it to line 7.

TheTinCook (talk|edits) said:

16 April 2009
"I would put in on line 21 and link it to line 7."

That doesn't make sense to me. It's mutually exclusive.

Anyway, stuff you report on 8919 has to go on line 7 wages. Can't go on line 21

Can't be anything other then wages or SE income. She does it for profit, and with enough regularity and continuity.

Taxea (talk|edits) said:

16 April 2009
You said there weren't 1099's for much of the income. I didn't know you could put it directly on line 1 which is why I would put it on 21 linked to line 7...Didn't know you meant you were going to include it in 8919...if it was small gigs I don't think the IRS really cares....long as the didn't require the issuance of a 1099...

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