I received a check for $5000.00 as a witness to testify in court for a lawyer, he is not going to send me any 1099-misc. Is this income taxable? And where do I report it on my 2017 tax return?
Yes, you are required to report all income. If this testimony fee was not related to your main job, you may enter it as Other Reportable Income.
To find this in TurboTax, open your return and follow these steps:
Or open your return and search on "other reportable income", click on the "jump to..." link, then answer "No" to other wages. Click Start beside "Other reportable income" and follow the prompts.
However, if this fee related to your main job/profession, you would enter this as "Other Income not reported on Form W-2" under Miscellaneous Income.
This is my exact problem as well. Where would I deduct the expenses for travel, hotel, and lawyer fee to represent me during the deposition against the income?
It depends. if you are filing an individual tax return and this is a one-time service, please follow the steps below:
Be sure to report each payment in the proper box because the IRS uses this information to determine whether the recipient has properly reported the payment. The income will be taxable, however, you will not pay self-employment tax on it since it is not Schedule C income.
This income should not be entered on Schedule C (Business Profit & Loss) unless you are in the business of providing this type of service. If you are in the business of providing testimony in court then you would be able to take your related expenses such as travel, hotel, etc.
See the instructions below for Schedule C filers: