that $1000 should be in the 'other income' section...... In fact, and while I don't normally do it this way', i wouldn't even list the $1,000 on the tax return - because whether you list it or not there is no tax due - the whole objective here is to get back the withholdings. The IRS is not going to come after you for something that isn't listed that doesn't result in owing any money in any event (if you want to prove that there is nothing owed, just add $1,000 to the wages to watch what occurs - and then change it back).
it is NOT self-employed money.
