Principal business code

[Vudu29]

What is the principal business code for egg donation if you don’t have a business or LLC?

[SharonD007]

Refer to the IRS instructions 2024 Instructions for Schedule C. Look on page 3, line B to find your business code.

Where are you trying to enter a business code in your tax return if you don't have a business?  Please provide more information so we can help.

[Vudu29]

Received 1099-MISC for selling eggs. Turbo Tax automatically generated a Schedule C. The first question during review was, “Is this a qualified business under 199A?”  I said No. 

Then in Section A there is a place to fill in principle business or service. I entered “Sold human eggs”.

Now the form seeks a Principal Business Code in Section B.  This is my original question. I am not sure what to do here. 

I left Section C and D blank per the form’s instructions if no business name or EIN. 

Right before Section E the form requests a business street address. Is that supposed to be my residence if I do not have a business?

I will likely need an answer for Section F:  Accounting Method. Is this the manner in which I was paid? Cash, Accrual, or Other?

[PatriciaV · Accepted solution]

If this was one-time income (unlikely to happen every year), you can report this as "Other Income" that isn't subject to self-employment tax. If so, you wouldn't need Schedule C.

To change how you report this income, first delete the business set up under Self-Employment (use the trashcan icon or Delete). Then return to the topic "Income from Form 1099-MISC" and change your answers as follows:

1. After reviewing the info shown on the 1099-MISC, continue until you see the question about this being connected to your main job, and say "no."
2.  Check only the box for 2024 income. 
3. Then answer that this was not an "intent to make a profit." 

Those three answers should classify this as "Other Income", which will appear on Line 8 on Form 1040.

If, however, you expect to receive this income on a regular basis, complete Schedule C with the following information:

1) Business Code: 999000 is the default if you can't find a better choice.

2) Use your home address.

3) Cash basis is the most common for self-employed individuals.

[Vudu29]

This was excellent information. Thank you for the clear directions.