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Where to show 1099-MISC SPORADIC Income Box 7

Asked Feb 6, 2010, 05:56 PM — 3 Answers
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!

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3 Answers
MukatA's Avatar
MukatA Posts: 7,105, Reputation: 963
Tax Expert
  
#2

Feb 7, 2010, 03:27 AM


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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jimbabwe's Avatar
jimbabwe Posts: 3, Reputation: 1
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#3

Feb 8, 2010, 05:49 PM
Quote:
Originally Posted by MukatA View Post
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.
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.
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AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,862, Reputation: 3723
Senior Tax Expert
  
#4

Mar 4, 2010, 12:57 PM


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.
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