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1099 income question

My neighbor's only income for 2013 was 1099 consulting income (and a few hundred dollars he received from a premature IRA distribution which was not rolled over and will be considered income, I guess). Regarding the consulting, he worked at the client's location and did no work for the client from his home. He made the four estimated tax payments (three in 2013 and one in 2014) for estimated Federal tax and Illinois tax. He had no health insurance premiums in 2013.

Does he only have to file a US1040 (long form)and US1040-IL form? Does he need to file a US1040, Schedule C or anything else?

Thank you.

Reply to
sbernelli
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Does he need to file a US1040, Schedule C or anything else? He needs to file the 1040 with Schedule C to report his consulting income and any business expense. If he had not reached age 59 1/2, then he will need to file Form 5329 to compute the 10% additional tax on the IRA distribution or to specify the exemption to the additional tax. He will also need the 1040 Schedule SE to compute his SE tax if his net income from consulting is at least $400.

Reply to
Alan

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