In answer to your questions:
- The 1099 MiSC is the correct and only form to use to report substitute payments. This is reported as other income on your 1040.
- You would pay the applicable federal and state taxes on other income and no SE/ NIIT/ Medicare taxes since this is not earned income.
- Since investment expenses are no longer deductible for federal income tax purposes, it cannot be carried forward to be used in future years to offset income.
- Regardless, whether you itemize or claim the standard deduction, you cannot carry forward any unused investment expenses.
@Ionnowhy
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