I did a one time job for a company and received a 1099-MISC. TT keeps wanting me to file out a Sch C but sch C clearly states that sporadic activities don't count. Help!

Forum|Forum|6 years ago
June 3, 2019
3 replies
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To be clear, the schedule C states "An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. For example, a sporadic activity or a hobby does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Schedule 1"

This tells me that I should not be filing a schedule C but instead should be using line 21 on the schedule 1 form. How do I get TurboTax to do this?

TurboTax Deluxe Windows

Best answer by Coleen3

Unfortunately, this is Self-Employment income. The fact that you worked and earned money for the services performed, and that you did not get a W-2, leave no other choice.

When the IRS talks of sporadic activity, the following might help explain that.

In Revenue Ruling 77-356, a member of Congress received payment for giving speeches, for which there was no pattern to the number of speeches given, the amount of time they required or remuneration received. During the year in question, the taxpayer made 10 speeches, for which $1,500 was received. Their frequency indicated “a degree of recurrence, continuity, and availability for speech making,” and thus were considered self-employment.

On the other hand, a taxpayer who was paid for an “occasional” speech and did not seek such engagements or indicate availability for them was not self-employed (Revenue Ruling 55-431).

ScruffyCurmudgeon

Employee

Was the income reported in Box 7 of Form 1099-MISC or Box 3?

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kworobel

Question about a 1 time plop from a fire pension. I have received 2 1099-R from pension income in 2024, but should I receive anything else for the plop? The initial check was 20% less for early withdrawal penalty. Not sure if this plan doesn't get a penalty and that's why my tax return workup shows Im getting more than expected back?

RobertB4444

If that one time payment was included in the 2 1099-R's that you received then you don't need anything else. The one that was sent early should have code '1' in box 7 and will then be subject to a 10% early withdrawal penalty. If they withheld enough to cover that penalty plus enough to cover the taxes due then that would explain your larger than expected refund.

If the one time payment (or plop - I like that) is not included in the two 1099-Rs that you have received then you should receive another form for that.

@kworobel

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ameb1Author

It was reported in box 7 (Nonemployee compensation).

Coleen3Answer

Employee

Unfortunately, this is Self-Employment income. The fact that you worked and earned money for the services performed, and that you did not get a W-2, leave no other choice.

When the IRS talks of sporadic activity, the following might help explain that.

On the other hand, a taxpayer who was paid for an “occasional” speech and did not seek such engagements or indicate availability for them was not self-employed (Revenue Ruling 55-431).

ameb1Author

Thank you very much for your answer however I'm even more confused now.
In your quote concerning Revenue Ruling 77-356 "Their frequency indicated “a degree of recurrence, continuity, and availability for speech making,” and thus were considered self-employment". It is the "frequency" which make the work self-employment. If it was one time work performed by myself how does this apply? Thank you in advance for your clarification.