[frazwood]

This year, I did some work for the National Science Foundation in which I was paid a flat fee for the work. The money that I was paid (total = $2480) was to cover all of my expenses plus some additional amount. I received a FORM 1099-MISC from the National Science Foundation related to this.

I have some questions:
1. I am confident that I list the total amount (i.e. not deducting expenses) on Line 21, Form 1040. Correct?

2. I am also confident that I can deduct my expenses for this work (about half of what I was paid). Where do I do this? On my 1099-MISC form, the income is specifically listed as "nonemployee compensation". Do I list my expenses as on Form 1040, Line 24 (was I a fee-based government official?)? Or do I list them on Line 21, Schedule A (unreimbursed employee expenses?)? Or do I list them somewhere else?

3. Do I need to pay self-employment taxes on this income? I have a regular, full-time job so I would not consider myself to be self-employed.

[ebaines]

Actually you are self employed - you did this work as a contractor outside of your "regular" job. You show your income and expenses on Schedule C.

[frazwood]

Thanks. I think that I figured this out.

I need to file a Schedule C related to profits from a business (i.e. business income). I also need to file a Schedule SE to pay self-employment taxes.