ILLMAS Posted March 4, 2014 Report Share Posted March 4, 2014 Has anyone else ever seen SE Income being reported on line 7? A new TP came in with a prior year self-prepared tax return and next to line 7 something like HSNC appeared next to it. He pick up his paper after I told him his prior return was prepared incorrectly. I am guessing it was prepared with turbo tax. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 4, 2014 Report Share Posted March 4, 2014 Household employee wages under $1,800 not required to be reported on a W -2 are reported there with a code "HSH". Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 4, 2014 Author Report Share Posted March 4, 2014 The wages were close to 17K, Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 4, 2014 Report Share Posted March 4, 2014 MAS When someone gets a 1099-misc and the preparer has a clear cut that this person was an employee, the preparer can add the 1099-Misc to line 7. In this case, the employer should get a letter from the IRS and the employee would be fired. So before adding a 1099-misc to line 7, we should ask how much they love that job and don't assume that the employee prefers line 7 or Sch C/SE. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 4, 2014 Author Report Share Posted March 4, 2014 Not in this case my friend, I just didn't provide all the facts and I am not blaming the TP, he paid someone to prepare it. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted March 4, 2014 Author Report Share Posted March 4, 2014 I once prepared a tax return with form 3949-A, TP was upset she was going to pay SE tax etc... Later on she had me prepare a Sch C because she didn't want to lose her job. Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 4, 2014 Report Share Posted March 4, 2014 I once prepared a tax return with form 3949-A, TP was upset she was going to pay SE tax etc... Later on she had me prepare a Sch C because she didn't want to lose her job. Yep, that happens a lot. Quote Link to comment Share on other sites More sharing options...
David1980 Posted March 4, 2014 Report Share Posted March 4, 2014 The wages were close to 17K, The $1,800 limit applies for a household employee that makes under $1,800 and thus isn't required to receive a W-2. So, hypothetically it may be possible they were an employee at ten different households and received $17k. Not likely... The household help on line 7 thing is popular among a certain kind of preparer. Counts as earned income for EIC. Doesn't have SE tax. If your goal is to create the largest fraudulent refund it's a useful tool. If you're honest, not so useful. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 4, 2014 Report Share Posted March 4, 2014 I once prepared a tax return with form 3949-A, TP was upset she was going to pay SE tax etc... Later on she had me prepare a Sch C because she didn't want to lose her job. Yes, and IMHO it should be their right to make that decision. Of course, the IRS does not agree. Quote Link to comment Share on other sites More sharing options...
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