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Sch C or just subject to SE?


Margaret CPA in OH

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Client's new college grad just worked for a few months detailing cars and gofer stuff for about $2300.  I don't really think it's a true Sch. C detail sort of thing.  Is it appropriate to just have it subject to SE?  He really isn't planning this to be his life's work and I think it just got him through the summer.  Mom says he's pondering life now at dad's (ex-husband) house until life shows up in real time.

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Thanks.  I agree with W-2 but that isn't what he got.  I do believe it was one off but who knows?  I suspect mom and dad would be extremely unhappy with paying for 4 years of college and working for a few months detailing cars then retiring.  I just report, right?  Since he will no longer be dependent (was mom's mom's in the divorce, dad got brother), mom is pretty much finished with him and I don't think he will be paying for me to prepare any future returns. 

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How many people get a job in their preferred field right out of college? Daughter wanted to get into nonprofits and now does develop the international seminars for a professional society of international studies academics. But she started in a nursery school and did a lot of diaper changing while job hunting. Good for your client's son for working for a few months and not just sitting in mom's basement watching Wayne's World. I'd put it on Schedule C.

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8 hours ago, cbslee said:

 

Things must be different in the Midwest. Here Minimum Wage is $12.75 per hour with lots of jobs available.

To attract anyone most places starting wage is higher. For example starting wage at the local Taco Bells is $14.25 per hour.

I'm directly across the river from Trenton, NJ.  New Jersey's minimum wage will rise to $15 in 2024.  Today, many businesses are having issues retaining employees who pay below that wage.  In many instances,  they have to pay well above that wage to even attract new talent.  Everyone wants a "Work Life Balance" with many only looking for jobs that allow them to work from home five days a week.  In my state, Pennsylvania, the minimum wage is $7.25 and has not changed in 13 years.  

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10 hours ago, Abby Normal said:

Why?

Because lately every other taxpayer is starting up what they consider a "business" selling something.  Mostly you have to pull the information out of them because they have no idea what they are doing as to SE, Inventory, COGS, mileage, etc; and ten to one; next year it will have disappeared.

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29 minutes ago, mcb39 said:

Because lately every other taxpayer is starting up what they consider a "business" selling something.  Mostly you have to pull the information out of them because they have no idea what they are doing as to SE, Inventory, COGS, mileage, etc; and ten to one; next year it will have disappeared.

Bad memories, I had a flurry of these Schedule C wannabies some years ago. You're totally right  -  no clue🙄 

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I wouldn't bother with a Sch C if there are no expenses.  Just Line 21 subject to SE.   If the son is over 18 he may be eligible for EIC.  If the credit won't calculate with just an entry on 21, you'll have to use C.   If a parent is claiming him, it won't matter because no EIC, so Line 21 is simplest.  The IRS won't care as long as it gets its tax.

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