Leaderboard

I think the real question here is whether or not the money is going to the volunteers. My understanding is that if the money is going towards travel for the volunteers, and not for their time (ie income), then it may be deductible. While you cannot earmark the dollars to go DIRECTLY for "Joe" - -you can donate towards the fund that may choose "Joe" as their representative.

I agree with the Sched CEZ - -it really is easy to figure out.

I agree. If he has any direct expenses to deduct against the income, maybe he will be able to reduce it (using Schedule C-EZ below the threshhold for paying Self Employment tax. His chances of this income causing an audit or other problems with IRS are almost zero.

Eric -- I concur with Margaret. If not part of his regular business, Line 21. If it is his regular business (has a job writing copy but this was outside his employment), then definitely Schedule C (or C-EZ). Expenses (including mileage) for this job push him towards Schedule C-EZ rather than Line 21.

Well, bless his honest heart! And it is reportable income although, because it is less than the $600 reporting threshold, he may not receive a Form 1099. If he is not in the business of writing copy, he could report it on Line 21 of Form 1040 as Other income but, because it is over $400, it is subject to Self Employment tax so he would also file Schedule SE. If he had any expenses related to this income, he may instead be better off with a Schedule C-EZ, not too complicated if the expenses are easy, and Schedule SE. If he is truly not in this business, he may just report it on Line 21 and pay only income tax, not self-employment. As always, it depends and you will likely receive other suggestions, too.