Self-Employment or Other Income?
Document Type
Article
Publication Date
7-1-2009
Publication Title
Journal of Accountancy
ISSN
1945-0729
Abstract
Taxpayers frequently have income reported on Form 1099-MISC. It may represent earnings from a trade or business that should be reported on Form 1040, Schedule C. If not, it generally is reported as other income on Form 1040. Of course, net income from a trade or business is subject to both income tax and the 15.3% self-employment tax, while other income generally is subject only to income tax.
However, while taxpayers can deduct a net operating loss from a trade or business, they may deduct their expenses incurred in generating other income only up to the amount of that income. Consequently, tax preparers must be able to determine whether income is trade or business income or other income, which isn’t always easy.
Recommended Citation
Harter, Charles, Jennifer Spiesz.
2009.
"Self-Employment or Other Income?."
Journal of Accountancy.
source: https://www.journalofaccountancy.com/issues/2009/jul/20091639.html
https://digitalcommons.georgiasouthern.edu/account-facpubs/97
