- Schedule C Material Participation - Yes or No (only these two choices) Yes, since they did the work, they materially participated
- Enter Business Code (once again it is not a business; the kid just worked for a company that does not issue W-2s; only 1099-Misc), so not sure what to put and if I put something will it create issues in next year's taxes as the current year's file will be used as the base file. Here is a link to the NAICS codes or Business Codes for Tutoring.
- Tutoring Address must be entered: Tutoring was performed from Dorm Room and Home room on the weekends. You can use his dorm address
- City, State and Zip must be entered
So, if I enter home or even dorm address, will it create any other issues (home and dorm are in California, CA, like would the FTB say you need a business license or some other stuff like that?) It would not create another tax issue, but you would have to check with the FTB for business license requirements in the state of CA
- Qualified Income: Yes or No Yes. This is about QBI and will reduce the taxable income by 20%.
- Required to File 1099 must be entered: Choices are Yes or No No. Not if he did not pay anyone.
- Accounting Method:
Line F: Cash, Accrual, Other Most people are cash. You would generally know if it was other as it would require other types of accounting for income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
