Terry D EA Posted February 13, 2016 Report Share Posted February 13, 2016 Have a client that is doing educational consulting work. They received form 1099 MISC with income is box 3. In my opinion, this should have been in box 7 subject to SE tax. I am thinking to include this as SE tax income anyway. Opinions please. Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted February 13, 2016 Report Share Posted February 13, 2016 Definitely belongs in box 7. IMO they are trying to not pay SE tax and asked it be put in box 3. I would inform the client that their income is subject to SE tax and that box 3 was incorrectly used. If they still want to go with box 3, I'm not sure what I would do, 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 13, 2016 Report Share Posted February 13, 2016 Your client should keep books for his business. 1099-MISC means nothing (unless it reports more than your client reports as income, then you have questions to ask your client). Report your client's income per his books on Schedule C and use Schedule SE. 3 Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 13, 2016 Report Share Posted February 13, 2016 1 hour ago, Terry D said: Have a client that is doing...work. Yep, sounds like work to me, too. 1 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 16, 2016 Author Report Share Posted February 16, 2016 My thoughts exactly. Belongs in Box 7. I will talk with my client. This was a drop-off so I haven't had the opportunity to speak with them yet. 1 Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 16, 2016 Report Share Posted February 16, 2016 24 minutes ago, Terry D said: My thoughts exactly. Belongs in Box 7. I will talk with my client. This was a drop-off so I haven't had the opportunity to speak with them yet. I think I'd just say, "Here's the Sch C where your income from consulting goes, and here's the Form SE..." In other words, I wouldn't discuss the Box 3 vs Box 7 with him at all. 2 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 16, 2016 Author Report Share Posted February 16, 2016 Thanks Rita, that sounds to be the best way. Just right out front, here it is. 2 Quote Link to comment Share on other sites More sharing options...
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