Yes the method below should be used. No. Schedule C is not the appropriate place to enter this income.
Follow the steps below to enter the income which as a change. I agree with @Hal_Al, it is subject to FICA (social security and Medicare taxes).
- Open your TurboTax return > Under Wages and Income scroll to Miscellaneous Income
- Select Other income not already reported on a Form W-2 or Form 1099 > Start or Revisit
- Select Yes under Did you receive any other wages > Continue
- Continue to screen Enter Source of Other Earned Income > Select Employee Compensation that was not reported on a W2
- This walks you through the Form 8919 - enter the required information as you continue
- Select Should have been reported on a W-2 for the dropdown
Because the IRS ruled that this income does qualify for earned income tax credit (EITC) purposes means the employee portion of social security and Medicare taxes must be paid.
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