Can I report income previously reported on Schedule C as “other income” (occasional income)?

[MVWilliams49]

Since 2018 I have been reporting direct sales income on Schedule C. I intended to pursue this activity to earn a profit. However, things didn't go as expected and finally in 2021 decided not to pursue this activity as a business. I received a commission of $120. Can I stop filing Schedule C and report the $120 commission as "other income" (occasional income)?

Note: My husband and I file jointly (MFJ). He is self-employed and he reports his business income on Schedule. C.

Thanks.

[LeonardS · Accepted solution]

No, if the commission was reported on a 1099-NEC or 1099-MISC you need to file a Schedule C.  To report it as other income when it is directly related to a business activity would not be correct.  If this is your only income to report it is well below the $400 threshold for self-employment tax.  Also as your husband files a Schedule C, you do not have to upgrade to a higher level of TurboTax to file your Schedule C.

[MVWilliams49 · Accepted solution]

Thank you for your prompt response!