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1099-Misc box 7 non employee compensation not being treated as SE income?

ERIC J
Level 3

Not being reported on Sch C.  Why isn't system calculating SE tax?  Do I need to tag it as subject to SE income somehow/where?  thanks!  eric j

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Just-Lisa-Now-
Level 15
Level 15

If its not a trade or business, why would it be subject to SE?

With a 1099MISC and a figure in Box 7, IRS computers will be looking for Sch C, Id put it on there and then mark NO to the QBI question so that its not considered a trade or business.

Im not sure how to make the SE income and Sch SE flow anywhere without the Sch C, sorry.

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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5 Comments 5
IRonMaN
Level 15

Please stick to one post.


Slava Ukraini!
Just-Lisa-Now-
Level 15
Level 15

 wrote:
Re: 1099-Misc box 7 non employee compensation not being treated as SE income?

Not being reported on Sch C.  Why isn't system calculating SE tax?  Do I need to tag it as subject to SE income somehow/where?  thanks!  eric j


Box 7 should go to Sch C


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
ERIC J
Level 3

Because I can justify why the activity related to the SE income doesn't rise to the level of a trade or business.  There is no requirement that SE income must be reported on a Sch C.  I avoid including Sch C if possible.  thanks

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Just-Lisa-Now-
Level 15
Level 15

If its not a trade or business, why would it be subject to SE?

With a 1099MISC and a figure in Box 7, IRS computers will be looking for Sch C, Id put it on there and then mark NO to the QBI question so that its not considered a trade or business.

Im not sure how to make the SE income and Sch SE flow anywhere without the Sch C, sorry.

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
ERIC J
Level 3

Thanks Lisa!  I agree that tagging it to the Sch C is the cleanest trail.  However, over the years I have reported 1099-Misc as Other Income and included Schedule SE rather than on Sch C without generating IRS CP 2000 notices.  I'm not aware of a REQUIREMENT that SE income gets reported on a Schedule C.   

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