2007 Self Employment Income reported as "Other Income"

mammondee · 2013-03-05T00:16:18+00:00

61 year old female just returned from the social security office estimating herfuture SS benefits. The SS agent realized she had zeros in 2007, with taxableSS earnings in all other years. She brought her returns to me to find out why. She has been caring for her mother, and her (engineer) brother files her taxesvia turbo tax. In 2007 this income ($41,000) was reported as "other income" online 21 of the 1040 and no self employment taxes were paid. In 2008, 2009,2010, 2011 and 2012 this same income was reported as schedule C self employmentincome and SE taxes were paid. The return was originally filed before April 15, 2008 and has never been openedup. She claims to have no idea she should have paid SE tax on the 2007 incomeuntil today when I told her so. Is she required by law to amend this return andpay the SE taxes that should have been due?

Mar 05, 2013 21 Replies

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Arthur Kamlet 13 years ago

How did a six-month extension morph into a 3 year 3 month delay?

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jay_wiedwald 13 years ago

"Special rules apply to workers who perform in-home services for elderly or disabled individuals (caregivers). Caregivers are typically employees of the individuals for whom they provide services because they work in the homes of the elderly or disabled individuals and these individuals have the right to tell the caregivers what needs to be done. These services may or may not be provided by a family member. If the caregiver employee is a family member, the employer may not owe employment taxes even though the employer needs to report the caregiver's compensation on a Form W-2."

Further examples include income reported on a 1099-MISC.

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Jay Wiedwald Oakland, CA

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