I received a 1099-misc for an art project grant as an individual, I am not a corporation or non-profit.
The 1099-misc I received has the total amount of the grant on box 7, which much of it was for the project and my compensation for it was only a small faction ($500). When I enter the option of self-employment, and subsequently get asked the income on the self-employment, do I enter the $500 amount (which is proved on the grant budget and reporting) or the full amount of box 7 ($6500). I would be getting hit with more taxes If I enter the $6500, I am inclined to just enter the income portion (500), but since box 7 has 6500 i am uncertain on what to enter.
Thanks
Amounts reported in box 7 of form 1099-MISC are considered as self-employed income.
You should report the whole amount of $6,500 as income, but you can deduct the amounts you paid out for the project as business expenses. And you will be taxed (income tax and self-employment tax) on the net amount after epenses.
Amounts reported in box 7 of form 1099-MISC are considered as self-employed income.
You should report the whole amount of $6,500 as income, but you can deduct the amounts you paid out for the project as business expenses. And you will be taxed (income tax and self-employment tax) on the net amount after epenses.