payments to convention delegate

[NECPA in NEBRASKA]

My client was a delegate to a non profit convention and was reimbursed for expenses with additional payment of about $500 for some reason. It was all reported on a 1099 MISC in box 7. He doesn't work for the company. He is retired. I don't think that this should be subject to S/E tax as it's not a business for him, but I want to deduct his travel expenses from the 1099. I'd like to report it as other income, but then I can't deduct his expenses. Does anyone have any ideas on how to save him S/E taxes? Thanks!

Bonnie

[jainen]

>>then I can't deduct his expenses<<

Why not?

[Julie]

There are only two choices that I can see:

1. Line 21, expenses on Sch A, subject to 2%.

2. Sch C.

By saying, "It is not a business for him," you're suggesting that #1 is the most correct answer. However, he might do better by putting it on Sch C, because his expenses almost certainly would have exceeded $100, and which would put the SE income below the $400 threshold and reduce the taxable income at the same time.

Unless you're saying that he received $500 more than his expenses? In which case I'm misunderstanding your question.

My client was a delegate to a non profit convention and was reimbursed for expenses with additional payment of about $500 for some reason. It was all reported on a 1099 MISC in box 7. He doesn't work for the company. He is retired. I don't think that this should be subject to S/E tax as it's not a business for him, but I want to deduct his travel expenses from the 1099. I'd like to report it as other income, but then I can't deduct his expenses. Does anyone have any ideas on how to save him S/E taxes? Thanks!

Bonnie

[bstaxes]

Sch C mileage will probably be more that $100, plus the cost of the room. Definitely a Sch C. I've done this for fireman conventions.