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Discussion Forum Index --> Tax Questions --> SE or Other Income
Familytax (talk|edits) said:
| 2 April 2007
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| In 2006 I prepared returned the final personal returns for my deceased grandmother and her initial estate income tax returns. My mom was the executrix and she asked me to help and paid me for my services. My dad also asked me to prepare his taxes and paid me. These are the only returns I prepared. Do I report this as self-employment income or as other income?
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Deback (talk|edits) said:
| April 2, 2007
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| Agree with Glmpllc. Report on Line 21, Other income - You didn't prepare the returns with a profit motive.
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Wwtaxes (talk|edits) said:
| 2 April 2007
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| Unless of course, you have expenses to offset enough of the income (tax software, postage, references, copies, etc), which might make it more beneficial to be put on a C instead of line 21.
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TxSrv (talk|edits) said:
| 2 April 2007
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| Profit motive is not the sole [subjective] test, and in the case of most services, it will be profitable. The Tax Court objective test is whether the activity was regularly engaged in, and not "sporadic." Report solely on line 21 under facts posed. Unless expenses would bring net under $433; then Sch C-EZ will work too. Or claim any expenses down to $433 net to avoid any S/E tax, if desired as a matter of principle.
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Familytax (talk|edits) said:
| 3 April 2007
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| Thanks for your responses. I was thinking line 21 since it's sporadic. I filed my Grandma's final estate income tax return this month, so that's not continuous. I may do my dad's taxes continuously, but I'm not trying to grow a business/not open to general public.
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TxSrv (talk|edits) said:
| 3 April 2007
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| Well, if how well do we continue to do good on just close family's taxes, that's reward enough, better yet if they really think so. How they reward us is family business. Not even line 21 of 1040 in such case.
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