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147d
Mar 7, 2013, 03:29 PM
I have a 1099 misc it was for a learning program, at the end we got $700 for taking these classes. It was a one time thing. Can I file this on line 21 or do I have to pay self-employment and use schedule c

AtlantaTaxExpert
Mar 7, 2013, 05:09 PM
If the $700 is in Box #7, you need the Schedules C and SE.

The Junoo
Mar 9, 2013, 12:39 PM
If you had any expenses in connection with the income that you received on your 1099-Misc, then your Tax Adviser would suggest that you enter this information on Sch C / Sch SE and deduct those expenses that were directly associated with the 1099-Misc income. Thus, you are effectively lowering your taxable income earned from the 1099-Misc income, resulting in a lower tax liability.If on the other hand, there were no expenses related to this income, then you should include this 1099-Misc income on Form 1040 Page 1 Line 21, as other Income subject to self-employment taxes. Thus, subjecting you to a higher income tax on the 1099-Misc income earned, as this income is going be subject to both regular tax rate and S/E tax.