blozanor

Thank you everyone. All of you have been really helpful, we'll follow your advice.

Thank you jainen, I understand what you mean, of course the point is to pay the correct taxes, this is what we are going to do. Maybe I didn't explain myself clear in the first post and that's what generate the confussion. We really know the client is not in a photography business, we do know this was a prize for a one time contest, and photography is not even a hobby for him, so we wondered why they reported the prize in box 7. Knowing this, we try to figure out which would be the best option, line 21 of form 1040 (explaining that it was a prize on that line) or fill out schedule C, not because the taxes to pay are different (they would be the same), but because we wanted to discuss with the users which option gives less problems. Pacun, I don't think I said anything to be offended by you, not all of us have the same knowledge as you seem to have in this matter.

Thank you for your replies. I'm sorry if this was a stupid question for you, but we had our doubts and we thought someone from here can help us. I can assure you that this was a prize from a photo contest (I know for sure after the interview), and that person had a full-time job not related with this. So, I can take from your answers that we should fill the schedule C, although it is no business and we can't fill the business name and ID lines? Again, thank you for your help

Thank you MargaretMort, I must have missed that question. But, still, how should we explain that box 7 was incorrectly marked? where I mean? We are sending it by mail, and since we need to send the 1099-MISC and the "employer" should have sent it also, we don't know how to report this or just leave it in line 21 although the 1099-MISC says box 7. Thank you again

Hi everyone, I hope you could help me with this problem. I understand that box 3 (other incomes) in 1099-MISC is for prizes (among other things) and box 7 for nonemployee compensation. We just have a 1099-MISC with $1395.84 in box 7 that actually correspond to a prize from a photo contest. In this case, should we report it in line 21 of 1040 form? If we try to use it as box 7 we would need to fill Schedule-C and this doesn't make any sense because the person has a full-time job not related with this prize, and of course no way to fill out the business name, profit and vehicle for example. What do you recommend in this case? And also, if we put it in line 21 of 1040, could this be a problem because it is in box 7 of 1099-MISC? Really appreciate your help, thanks