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My husband and I both donated plasma last year. We filed both of our earnings from this under self employment. Was this wrong?

Both of us earned more than $600, but it feels wrong that self-employment tax would apply to this.
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1 Best answer

Accepted Solutions
Opus 17
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

My husband and I both donated plasma last year. We filed both of our earnings from this under self employment. Was this wrong?

Generally this type of income should be reported as miscellaneous or "other" income.  It's not self-employment unless it is your "ongoing trade or business" that you regularly engage in with a profit motive.  

 

If you get a 1099-MISC, Turbotax may ask questions to try and classify this as a business or not.  You need to answer "no" (not a business, not for profit, not similar to other work your do, etc.).

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2 Replies

My husband and I both donated plasma last year. We filed both of our earnings from this under self employment. Was this wrong?

Assuming that the donations are occasional the income can be other or miscellaneous income which would not be subject to self employment tax. 

 

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/plasma-donation-as-taxable-incom...

Opus 17
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

My husband and I both donated plasma last year. We filed both of our earnings from this under self employment. Was this wrong?

Generally this type of income should be reported as miscellaneous or "other" income.  It's not self-employment unless it is your "ongoing trade or business" that you regularly engage in with a profit motive.  

 

If you get a 1099-MISC, Turbotax may ask questions to try and classify this as a business or not.  You need to answer "no" (not a business, not for profit, not similar to other work your do, etc.).

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