Hi Tom. Thanks for the comment. I didn't realize that my quote from the IRS page did not show up. The missing text was not what you included. It was the definition of self-employed:
- You carry on a trade or business as a sole proprietor or an independent contractor.
- You are a member of a partnership that carries on a trade or business.
- You are otherwise in business for yourself (including a part-time business)
However, earlier today I did find IRS Publication 334, which contains what you quoted on former insurance salespersons. The more relevant part for me was this: (quotes offset by square brackets)
[
Insurance agent, retired. Income paid by an insurance company to a retired self-employed insurance agent based on a percentage of commissions received before retirement is reported on Schedule C or C-EZ. Also, renewal commissions and deferred commissions for sales made before retirement are generally reported on Schedule C or C-EZ.
However, renewal commissions paid to the survivor of an insurance agent are not reported on Schedule C or C-EZ.
]
At first I thought this answered my question: That it was self-employment (SE) income. But then I realized that it does not. Schedule C is "Profit or Loss From Business." I think that reporting the income on Schedule C is separable from self-employment. That is, if I say that my father's income is not self-employment (SE), the income will be reported on Schedule C, but the SE tax form won't come into play.
So I guess I still don't know for sure. But my best judgment is that my father's case is not self-employment, given the SE definition above.
