1099-MISC 1040 Wages vs. Sch C

[Mai]

What's the criteria to determine where to report 1099-MISC box 7, nonemployee compensation? Should it be on form 1040 line 7 wages or Sch. C. The client got a temporary job at a company and was given a 1099-MISC. If he doesn't has any expense to claim, can it be reported on 1040 line 7 instaed of Sch C?

[David1980]

The IRS position would be Schedule C, C-EZ, F, or line 7 (with an 8919). See instructions for recipients for box 7 of the 1099-MISC. 8919 still has the taxpayer responsible for 1/2 the social security/medicare tax. You probably want to take a look through the SS-8 which is what the IRS would want to go along with that 8919. It gives a good idea of what kind of factors they're looking at to determine whether this is an employee or an independent contractor.

So if independent contractor Schedule C. If misclassified employee Line 7 and 8919.

[JohnH]

If the individual wants to go the "misclassified employee" route, just be sure to ask how important the job may be to them in the future. If they never want to work there again, don't mind getting fired if they're still there, and if they don't have any family or friends working there whom they might get into trouble, then this route might be worth saving 7-1/2 %.