I have a 1099-MISC with income ($824) in box 7. 1040 Line 21 says NOT HERE. Schedule C says NOT HERE because it's sporadic. 1040 instructions page 11 say CHECK INSTRUCTIONS ON FORM 1099-MISC.

Since it's sporadic (i.e. a one-time event) I don't owe SE tax on it.

It also includes reimbursement, based on receipt I submitted to payer, for a car rental. I think THAT amount ($130) should NOT be in Box 7 on the 1099-MISC, as it's an expense "accounted to the payor."

So, now what?

Thanks!

Report of schedule C or C-EZ (Form 1040) and claim the expenses including car rental if it qualifies as employee business expenses. Get the receipt back from the employer. If your total 1099-misc amount is $130, you do not pay SE tax on it.

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Originally Posted by MukatA

Report of schedule C or C-EZ (Form 1040) and claim the expenses including car rental if it qualifies as employee business expenses. Get the receipt back from the employer. If your total 1099-misc amount is $130, you do not pay SE tax on it.

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MukatA, did you read my post? Schedule C says NOT HERE. I am a non-employee, so there are no EMPLOYEE business expenses. Regardless of the total of my 1099-MISC, I do NOT owe SE tax as the income is SPORADIC and not subject to SE tax based on an IRS ruling, and probably tax code as well.

Then report it on Line #21, but expect the IRS to challenge it because the amount involved exceeds $600. Your explanation may satisfy the IRS, or it may not. It literally depends on how competent the IRS employee with whom you deal is at his/her job.

Mukat's advice, though not TECHINCALLY correct, addresses the matter in a practical manner, and will allow you to file your return without further issues with the IRS.