Hi,

Myself Vasu, working as a IT analyst, I received one 1099-Misc form for referral fee paid by my friend for referring a project and 1 candidate to their company...

Right now I am on H1 B and I get W2 from my current employer and my friend IT company is no way related to my employer...

How to accommodate this in filing a return this year and what are pros and cons of this situation.

Thanks in advance,
Vasu

Vasu:

There are NO pro and cons. You must report the 1099 income.

Now, referral income is NOT self-employment income, so you probably can just report it on Line #21 (Other Income) on Form 1040.