Margaret CPA in OH Posted March 29, 2022 Report Posted March 29, 2022 Client's new college grad just worked for a few months detailing cars and gofer stuff for about $2300. I don't really think it's a true Sch. C detail sort of thing. Is it appropriate to just have it subject to SE? He really isn't planning this to be his life's work and I think it just got him through the summer. Mom says he's pondering life now at dad's (ex-husband) house until life shows up in real time. Quote
Lee B Posted March 29, 2022 Report Posted March 29, 2022 Sounds like it should have been on a W 2. If it was my client I would put it on Schedule C. I would find it difficult to argue that it was a "one off event" therefore "Other Income"? 2 Quote
Margaret CPA in OH Posted March 29, 2022 Author Report Posted March 29, 2022 Thanks. I agree with W-2 but that isn't what he got. I do believe it was one off but who knows? I suspect mom and dad would be extremely unhappy with paying for 4 years of college and working for a few months detailing cars then retiring. I just report, right? Since he will no longer be dependent (was mom's mom's in the divorce, dad got brother), mom is pretty much finished with him and I don't think he will be paying for me to prepare any future returns. Quote
Lee B Posted March 30, 2022 Report Posted March 30, 2022 Working once for a 3 day weekend at a convention or a jamboree is my idea of "one off" 2 Quote
Lion EA Posted March 30, 2022 Report Posted March 30, 2022 How many people get a job in their preferred field right out of college? Daughter wanted to get into nonprofits and now does develop the international seminars for a professional society of international studies academics. But she started in a nursery school and did a lot of diaper changing while job hunting. Good for your client's son for working for a few months and not just sitting in mom's basement watching Wayne's World. I'd put it on Schedule C. 4 Quote
Lee B Posted March 30, 2022 Report Posted March 30, 2022 Paying the SE Tax is an important lesson about the consequences of taking a job when you're told "no taxes will be taken out"! 3 Quote
Lee B Posted March 30, 2022 Report Posted March 30, 2022 Things must be different in the Midwest. Here Minimum Wage is $12.75 per hour with lots of jobs available. To attract anyone most places starting wage is higher. For example starting wage at the local Taco Bells is $14.25 per hour. 1 Quote
Yardley CPA Posted March 30, 2022 Report Posted March 30, 2022 8 hours ago, cbslee said: Things must be different in the Midwest. Here Minimum Wage is $12.75 per hour with lots of jobs available. To attract anyone most places starting wage is higher. For example starting wage at the local Taco Bells is $14.25 per hour. I'm directly across the river from Trenton, NJ. New Jersey's minimum wage will rise to $15 in 2024. Today, many businesses are having issues retaining employees who pay below that wage. In many instances, they have to pay well above that wage to even attract new talent. Everyone wants a "Work Life Balance" with many only looking for jobs that allow them to work from home five days a week. In my state, Pennsylvania, the minimum wage is $7.25 and has not changed in 13 years. 1 Quote
mcb39 Posted March 30, 2022 Report Posted March 30, 2022 9 minutes ago, RitaB said: I would prepare a Sch C. 9 minutes ago, RitaB said: I would prepare a Sch C. Schedule C, but I hate these. Quote
Abby Normal Posted March 30, 2022 Report Posted March 30, 2022 21 minutes ago, mcb39 said: but I hate these Why? 1 Quote
grandmabee Posted March 30, 2022 Report Posted March 30, 2022 I liked it when they had the C-EZ for cases like these. 4 Quote
Abby Normal Posted March 30, 2022 Report Posted March 30, 2022 One page of a Sch C or one page of a C-EZ is all the same to me. I never liked the EZ form. Quote
mcb39 Posted March 31, 2022 Report Posted March 31, 2022 10 hours ago, Abby Normal said: Why? Because lately every other taxpayer is starting up what they consider a "business" selling something. Mostly you have to pull the information out of them because they have no idea what they are doing as to SE, Inventory, COGS, mileage, etc; and ten to one; next year it will have disappeared. 1 Quote
Lee B Posted March 31, 2022 Report Posted March 31, 2022 29 minutes ago, mcb39 said: Because lately every other taxpayer is starting up what they consider a "business" selling something. Mostly you have to pull the information out of them because they have no idea what they are doing as to SE, Inventory, COGS, mileage, etc; and ten to one; next year it will have disappeared. Bad memories, I had a flurry of these Schedule C wannabies some years ago. You're totally right - no clue 2 Quote
Sara EA Posted March 31, 2022 Report Posted March 31, 2022 I wouldn't bother with a Sch C if there are no expenses. Just Line 21 subject to SE. If the son is over 18 he may be eligible for EIC. If the credit won't calculate with just an entry on 21, you'll have to use C. If a parent is claiming him, it won't matter because no EIC, so Line 21 is simplest. The IRS won't care as long as it gets its tax. Quote
Margaret CPA in OH Posted March 31, 2022 Author Report Posted March 31, 2022 Thanks, Sara, I wanted to put on Line 21 but was a bit overwhelmed with the rather strong responses to put on Sch. C. So I put on Sch. C and it's done. He is still dependent for last year. IRS will get the tax. I'm tired. 1 Quote
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