Dave T Posted February 2 Report Share Posted February 2 Taxpayer was appointed to the board of a nonprofit in 2023. It is a 3 year term and they meet quarterly. He received a 1099_NEC from them and I know it is taxable but is it subject to S/E tax as well? Thank you Quote Link to comment Share on other sites More sharing options...
BrewOne Posted February 3 Report Share Posted February 3 Looks like a Schedule C to me--had a similar situation years ago (before there was a form 1099-NEC). Client was paid in Box 7 of the 1099-MISC. I told him to ask the Board if they could put that in Box 3, otherwise he was subject to S/E tax. They would not, so he had to pay S/E tax. Might ask them about expenses related to the meetings. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 3 Report Share Posted February 3 I had one years ago who was on the board of a Credit Union. Yes, it was SE, but he did deduct his mileage back and forth to meetings. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 3 Report Share Posted February 3 It depends the facts and circumstances. Is it a sporadic activity vs trade or business conducted on a regular basis? Four times a year for three years most likely will not pass the sporadic test. I don't think you will find an authoritative cite to treat it other than SE. 18 hours ago, Dave T said: It is a 3 year term and they meet quarterly. 2 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 3 Report Share Posted February 3 2 hours ago, mcb39 said: I had one years ago who was on the board of a Credit Union. Yes, it was SE, but he did deduct his mileage back and forth to meetings. Sounds like commuting mileage 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 5 Report Share Posted February 5 On 2/3/2024 at 12:25 PM, Lee B said: Sounds like commuting mileage Yes, it always was a questionable deduction, but he had three small Schedule C small businesses. They have all long since ceased to exist. They still file, but I believe that this might be his last year. He has had a stroke and they have slowly disposed of their assets. The only time he ever got questioned was the year before he came to me; when he prepared his own return. As I age; so do my clients; many of whom have been with me for years. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.