BobKamman
Level 15

The airline should have used the 1099-MISC.  He's not performing any services for them.  What if he decides to work for another airline once he has the required hours -- does he have to pay it back?  Probably.  Is his Schedule C going to show $7,500 of non-1099 income, anyway?  I wouldn't make him pay SE tax on it, if that's the result of using Schedule C.  

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