Notetaking stipend

Feb 07, 2008 2 Replies
D

Hello,



My wife is a student and takes notes for students with disabilities and receives payment for this service. She is registered for the same class as the students and gives them her notes daily or weekly. She received a 1099-MISC this year for the money she received for this service.



My question is, how do we declare this income on our tax return? is she an employee or an independent contractor? Is this sched C income? and is so, do we then need to pay social sec and medicare taxes on this income.



Thanks!


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A

Yes, schedule C. And then schddule SE will calculate and tell you how to add SE tax to your form 1040 income tax return.

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P

I'll take a contrary position based on insufficient information. It's either miscellaneous income on line 21 of the 1040 or income from self-employment on Schedule C. See IRS Publication 533 for guidance on how to decide.

Anticipating some "Box 7" responses, the way it's reported on the 1099 doesn't decide the issue. It's a facts and circumstances question.

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