I received a 1099 Misc with an amount in box 3 residual. Last year I received a 1099 Misc for the same thing but it was reported in box 7. The income is residuals for credit card processing services. In the early years of doing this I was actively working on growing the business. For the past couple of years my only involvement is if one of my merchants has a problem that they need my help with. Review the merchant statements maybe 1 or 2 times a year so their rates don't start climbing. All in all I spent less than 15 hours the entire year both this year and last year doing anything. I'm not doing anything to generate the income, just support the merchants if a problem arises. I received the 1099 because I am a sub-agent (all the residuals are paid to the agent and then they pay me mine). When I enter it in QB it automatically puts it on a Schedule C as a business since I have received it in prior years and will again this year. However, I don't see how this is a business if I am not actively working on it (isn't it more in line with an insurance agent who has retired but still receives commissions on the policies they sold?). Anyway, what is the correct tax handling of this situation? If it shouldn't be reported on schedule C how do I make TT not put it there?
Thank you for your time
