Low income folks occasionally sell their blood or plasma and
>so have income from it. What is the most appropriate place
>to report this on Form 1040, especially if the individual
>has no documentation of the transaction?
> (snip). I want a practical answer. What
>line of 1040 does this go on? What if there's no
>documentation of the transaction?
It is sometimes to the advantage of the taxpayer to report this type of income as self-employment income. The self-employment tax is generally offset by the earned income tax credit and if the amount of self-employment income exceeds the minimum set by SSA for the year, the taxpayer gets credit for four quaters of employment with the Social Security Administration. One needs forty quarters to later collect Social Security payments.
Income is reportable regardless of documentation, and in this case, the income would be reported on Schedule C of form 1040.
-Crystal