Subject to S/E tax?

[Dave T]

Taxpayer was appointed to the board of a nonprofit in 2023. It is a 3 year term and they meet quarterly.

He received a 1099_NEC from them and I know it is taxable but is it subject to S/E tax as well?

Thank you

 

[BrewOne]

Looks like a Schedule C to me--had a similar situation years ago (before there was a form 1099-NEC). Client was paid in Box 7 of the 1099-MISC.  I told him to ask the Board if they could put that in Box 3, otherwise he was subject to S/E tax.  They would not, so he had to pay S/E tax.  Might ask them about expenses related to the meetings.

[mcb39]

I had one years ago who was on the board of a Credit Union.   Yes, it was SE, but he did deduct his mileage back and forth to meetings.

[DANRVAN]

It depends the facts and circumstances. 

Is it a sporadic activity vs trade or business conducted on a regular basis?

Four times a year for three years most likely will not pass the sporadic test.  

 I don't think you will find an authoritative cite to treat it other than SE.

18 hours ago, Dave T said:

It is a 3 year term and they meet quarterly.

 

[Lee B]

2 hours ago, mcb39 said:

I had one years ago who was on the board of a Credit Union.   Yes, it was SE, but he did deduct his mileage back and forth to meetings.

Sounds like commuting mileage

[mcb39]

On 2/3/2024 at 12:25 PM, Lee B said:

Sounds like commuting mileage

Yes, it always was a questionable deduction, but he had three small Schedule C small businesses.  They have all long since ceased to exist.  They still file, but I believe that this might be his last year.  He has had a stroke and they have slowly disposed of their assets.  The only time he ever got questioned was the year before he came to me; when he prepared his own return.  As I age; so do my clients; many of whom have been with me for years.