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Joseph_
Level 1

Other income "type" for 1099-misc Box 7 single "job" no profit motives

So I believe I have a rare case.  Most advice on the web seems to say that any 1099-MISC that has a box 7 will require SE Tax and a Schedule C; however, looking at the following link:

 

https://ttlc.intuit.com/community/self-employed/help/am-i-considered-self-employed/00/26535/message-...

 

Which states:

 

Business activities include any activity where you:

  • intend to make a profit (even if you operate at a loss)
  • have regular transactions or production of income
  • make ongoing efforts to sustain, grow, or further the interests of your business

This should not qualify as self-employment as it was a short ~30 hour, with no intention of turning a profit or sustaining a line of work.

 

So the IRS wording seem to make it clear that this is other income, but when researching what "type" to place in the free form field it was not clear what to enter.  However, it sure felt like I need to write up a narrative to reply to the apparently inevitable audit because of the value being in box 7 regardless of the information in the link above.

 

Thanks

2 Replies
Anonymous
Not applicable

Other income "type" for 1099-misc Box 7 single "job" no profit motives

the way the IRS would look at it is this way. if you didn't have a profit motive what didn't you do it for free? 

Joseph_
Level 1

Other income "type" for 1099-misc Box 7 single "job" no profit motives

https://www.irs.gov/businesses/small-businesses-self-employed/business-activities

 

"You do need, however, to make ongoing efforts to further the interests of your business."

 

I'm just following the black and white... it's not just getting paid but the verbiage above and in the original link.  Even the Schedule 1 instructions list the exception for sporadic activity.

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