1099 Other Income

[Taxizen]

The taxpayer brought 1099 Line 3 Other Income not Line 7 Nonemployee Compensation. As I know, since he was the salesman for the commission, she should have received 1099 line 7 income and pay the self employment tax on the net profit.

Would any of you comment on the difference between other income and nonemployee compensation? If I decide to go with as is 1099, can I claim the unreimbursed employee expenses on Schedule A? Or Do I have to report income on Schedule C and deduct business expenses there?

Any comment is appreciated.

:mellow:

[Julie]

Depends on the circumstances. There are times when it is not supposed to be sch C. Example: Furniture salesman is employed by a retailer, but gets additional commissions from the manufacturer. This may generate a 1099-misc with the amount either in line 3 or line 7. In this case, the salesman is not self-employed, and the income goes on line 21 (and unreimbursed employee expenses on Sch A). IRS has a brochure on this subject aimed at car salesmen. I don't remember the pub number.

Use Sch C if the salesman is self-employed.

The taxpayer brought 1099 Line 3 Other Income not Line 7 Nonemployee Compensation. As I know, since he was the salesman for the commission, she should have received 1099 line 7 income and pay the self employment tax on the net profit.

Would any of you comment on the difference between other income and nonemployee compensation? If I decide to go with as is 1099, can I claim the unreimbursed employee expenses on Schedule A? Or Do I have to report income on Schedule C and deduct business expenses there?

Any comment is appreciated.