I have a client who got 1099 MISC with amout reported on column 7. I believe it should have been on column 3 . What is the difference between amount being reported on columns 7 vs. 3
, I'm feelin pink.All Star
Box 7 IRS will be looking for SE income reported.
1099 MISC - Box 3 is NOT subject to SE tax - this would be Form 1040 Line 21 other income ( usually prizes, spiffs, etc0
1099 MISC - Box 7 IS subject to SE tax - usually reported on Schedule C with expenses to offset some of this income
I hope you don't do tax returns for pay.
why whould you believe that it should be reported in box 3 not subject to se tax?
Box 7 is usually for services performed, while box 3 is an all other category for such things as prizes and awards.
So, the question is why did your client receive this money? That may determine if it should be in box 7 or box 3.
i have client 1099 mis line 3 , prizes for sale, schedule c is correct.
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