Schedule SE IRS letter

Forum|Forum|4 years ago
April 24, 2022
7 replies
51 views

I received a letter from IRS asking to Complete form SE or explain why I am not liable to SE tax. I am not clear on how to fill form SE as none of the items in the form seem to apply. the Turbo Tax filing that was filed included Forms 1040 Schedule 1, A and D and Form 8949. None of these forms are referred to in the SE form.

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rjs

Level 15

The IRS is implying that you should have reported income on Schedule C, which would feed into Schedule SE. Did you have income on a Form 1099-NEC or 1099-MISC? If so, how did you report it? What was the income for? If it was a 1099-MISC, which box of the 1099-MISC was the income in? The IRS probably thinks the income was self-employment or business income.

cpuri1968Author

Level 2

Thank you for responding. I have income on a Form 1099-NEC. It was reported as NEC on line 8 of Schedule 1 (Form 1040). If so, how did you report it? The income was for my wife doing grocery delivery service. It wa basically a gig for which she got the 1099-NEC form.

Please suggest what action I should take.

rjs

Level 15

Your wife's grocery delivery "gig" is self-employment. It should have been reported as business income on Schedule C. Basically the IRS is right. Read the entire IRS notice carefully and follow the instructions in the notice for how to respond.

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Mike9241

Level 15

the IRS thinks that income reported on schedule 1 (other than line 3) should have been reported on schedule C and thus subject to SE tax. we can't see your return.

Mike9241

cpuri1968Author

Level 2

Thank you. This is for 2020 filing and not 2021. I filed extension for 2021. Not sure why you can't see it. I had to mail it in because the system at the end of the filing process asked me to do so.