@Erin03 wrote:
On another note regarding a 1099-MISC (with the income amount in Box 3) that
I received from an out-of-state friend for taking photos of their rental property for them a few times, should I put that I intended to make money or that I didn't? I'm not self-employed, but they paid me for the favor, and this is not work like my main job.
You've got a little of everything haven't you?
You are self-employed if you receive money for providing a product or service, provided you are engaged in an ongoing trade or business. That means you work regularly, try to make a profit, advertise, and generally do all the things a business does when it is trying to make money.
If you get paid for a service that is not an "ongoing trade or business" you can usually list it as "other income" and not business income and not be bothered by the IRS. However, if you are a professional photographer or something like it, then this side work would be self-employment even if it is the only side work you did for the year. If its a business, you can deduct expenses (like mileage) but you pay 15% self-employment tax on the net profit plus income tax. If it is "other" income, you don't pay SE tax but you can't deduct expenses.
To report it as "other" income, answer all the test questions as NO (not to earn profit, not like a regular job, no intention to continue next year, etc.)
