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1099 MISC line 7 vs. line 3 income

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


    Box 7 IRS will be looking for SE income reported.

    • SE is filled in when payment is is reported in box 3 of 1099.  I read that form 8919 is filled in when payment is reported in box 7 .  There is small  tax difference between whether the SE form or 8919 form is filled in (8919 being less).  That is why I  was wondering what is the criteria for reporting payment on box 3 vs. box 7. Any thoughts? 
    •  My first thought is that every conclusion you've reached is incorrect. The 1099-MISC instructions tell the payor which box to use.  I have no idea what you're reading to reach the conclusions you did, though.

    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?

      • I do believe that it should be subjected to SE tax.  It should be in column 3 because my client is not an "employee" .   What I am trying to find out under what circumstances does an employer report  the payments made in box 3 vs. Box 7 of the 1099 form. From my reading , for a tax preparer, it makes a difference. If the payment is reported on box 3, a SE form need to be filed.  If payment is reported in box 7,  form 8919 need to be filed.
      •  Where the heck are you reading that, thought?

      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.

        • receiving a prize is NOT subject to SE tax, unless the TP is in the business of receiving prizes?

        I've been using this site for understanding all parts of all forms:

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