How to report a 1099-MISC was received for a law enforcement officer ‘moonlighting’ for a school (directing traffic)?

[BDF524]

A 1099-MISC was received for a law enforcement officer ‘moonlighting’ for a school (directing traffic).  Officer wore uniform and used patrol car but was paid by the school.  There is no W-2.  Income was reported in box 7 of the 1099-MISC.  A few questions: 1) Does this require Schedule C for Sole Proprietorship? 2) Is this considered ‘qualified business income’ and does it qualify for the tax deduction of up to 20% of QBI?  3) Are there any expenses can be deducted given that the officer is wearing his uniform, issued sidearm and using the patrol car? 4) Any tips on simplifying this reporting?    

[MinhT · Accepted solution]

You should report the 1099-MISC as self-employment income. Just follow the TurboTax interview and Turbotax will generate a Schedule C in your tax return. You will have to pay income tax and self-employment tax on this income.

You can deduct expenses which ordinary and necessary for this work. In your case it could be any amount you had to pay out of pocket in order to do the work. 

Please read this TurboTax FAQ on how to report your form 1099-MISC on your tax return:

https://ttlc.intuit.com/replies/4801198

[BDF524]

Is this qualified business income?  Does it qualify for the tax deduction of up to 20% of QBI?

[MinhT]

Yes, this would be Qualified Business Income, qualifying you for the QBI deduction.

[BDF524]

Thank you!