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Retirement tax questions
Non employee compensation is defined as work performed during the tax year by a business (your) to provide services to another business (the one that pays you) . You must report non-employee compensation on a 1040 Schedule C, and pay the SE (16.3% Medicare and Social security tax) for the work preformed during the tax year. On Schedule C you can deduct your expenses (materials, supplies, etc) that were necessary to preform the work. It cannot report payment for any work preformed in a prior year.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
‎February 4, 2021
6:10 PM