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If I helped once as HS test monitor for one day) can't I list this under general/random income, not go through all the "my company" red tape and information?

1.  I do not consider myself a company -- I am just helping a friend although I do get paid.

2.  I do this once each year for Eductional Testing Service in Princeton, NJ

3.  ETS defines "Total Paid for Test Center Services"

4.  The form says "Form 1099-MISC, however, there are no boxes to check--no rent or royalty oreven "non-employee" box.

Level 7

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The IRS considers this self-employment work and how you can report it depends on your total self-employment income.

If you made less than $400 from this work and any other self-employment income combined, then you can enter this on Line 21 for Misc Income.  There is a $400 threshold for having to pay self-employment taxes, but this threshold is across all of your self-employment income.

To enter this miscellaneous income -

  • Click on Federal Taxes (may say Personal if using Self Employed or Home and Business)
  • Select Wages and Income 
  • When the page opens, click "Jump to full list” if it is not displaying the full list of income items.
  • Scroll down to the very last item, Less Common Income and click “Show More” to expand the list
  • Select "Miscellaneous Income, 1099-A, 1099-C
  • Select “Other Reportable Income” - the very last item (There is another “other” category that is the first choice - do not use that one)
  • Enter the income amount and a description and this will place the income on Line 21 of Form 1040 

However, if you made $400 or more from this work and any other self-employment income, then you need to pay self-employment taxes on it.  You will have to enter it as business income (even though you may not think of yourself as having a business, that is how the IRS classifies this type of income).  You can do so by performing a search for "Schedule C" and entering the income.

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