To be clear, the schedule C states "An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. For example, a sporadic activity or a hobby does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Schedule 1"
This tells me that I should not be filing a schedule C but instead should be using line 21 on the schedule 1 form. How do I get TurboTax to do this?
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Unfortunately, this is Self-Employment income. The fact that you worked and earned money for the services performed, and that you did not get a W-2, leave no other choice.
When the IRS talks of sporadic activity, the following might help explain that.
In Revenue Ruling 77-356, a member of Congress received payment for giving speeches, for which there was no pattern to the number of speeches given, the amount of time they required or remuneration received. During the year in question, the taxpayer made 10 speeches, for which $1,500 was received. Their frequency indicated “a degree of recurrence, continuity, and availability for speech making,” and thus were considered self-employment.
On the other hand, a taxpayer who was paid for an “occasional” speech and did not seek such engagements or indicate availability for them was not self-employed (Revenue Ruling 55-431).
Unfortunately, this is Self-Employment income. The fact that you worked and earned money for the services performed, and that you did not get a W-2, leave no other choice.
When the IRS talks of sporadic activity, the following might help explain that.
In Revenue Ruling 77-356, a member of Congress received payment for giving speeches, for which there was no pattern to the number of speeches given, the amount of time they required or remuneration received. During the year in question, the taxpayer made 10 speeches, for which $1,500 was received. Their frequency indicated “a degree of recurrence, continuity, and availability for speech making,” and thus were considered self-employment.
On the other hand, a taxpayer who was paid for an “occasional” speech and did not seek such engagements or indicate availability for them was not self-employed (Revenue Ruling 55-431).
The work was performed one time in the span of one day. By the IRS' own language, it doesn't belong on Schedule C. Your comment, true as it may be, essentially frames the IRS as the mafia, for whom one must ignore the actual rules in order to placate its insatiable lust for tax revenue.
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