[Jeff17]

Hi, I am filling (jointly) the 1040 form for my w-2 and my wife's 1099-misc. My wife is a midical school research fellow with green card. Her 1099-misc shows both in box3 and box 18her 2006 $25K income (other boxes are empty), which is her 2006 whole payment. Our questions are:

1. Should we put that 25K in 1040 line 21 or should we use Schedule C? I guess we should put it in Line 21. However, how can we figure out the box3's tax deduction?

2. Where else should we use/put the box3 income in our 1040 form? Can we use that in the "Adjusted Gross Income" of 1040?

3. Her 1099-misc Box18 also shows the same number state income, where should we put that income?

Thank you so much.
-Jeff

[AtlantaTaxExpert]

Line 21. Add it to your wages as part of your combined Adjisted Gross Income.

3) On the state tax return.

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