Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Schedule SE

BON
Level 3

I have a client that is a full time college student that worked part time for a Day Care and the employer paid her on a 1099.  I input as misc income and the IRS wants a Schedule SE and I have read the instructions etc and I do not know how to handle.  Can you force a Schedule SE in Lacerte and if so How?  IRS Letter said to complete Schedule SE.  The amount on 1099 was $5,746 and was on Schedule 1 and she had investment income and W2 income. 

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

4 Comments 4
George4Tacks
Level 15

Screen 14.1 > Income subject to self-employment tax (Ctrl + E), but a Schedule C is the preferred input. 

Income Subject to S/E Tax

Alimony and Other IncomeScreens 14; Codes 10,60

Enter other income subject to self-employment tax. Enter the source of the income in the description. The program includes these amounts in Other Income on Form 1040, Schedule 1 and carries them to Schedule SE, and prints a supporting statement.

 


Answers are easy. Questions are hard!
BON
Level 3

This person is not really self employed and I believe the Day Care Center considers her a household employee so why would she have to pay self employment tax?  How do I show she is not self employed to the IRS when they are requesting a Schedule SE?  Should I just write a letter to IRS and say she is exempt?

PS I love your Will Rogers quote

0 Cheers
TaxGuyBill
Level 15

Working for a daycare is almost always an employee situation, and she should have received a W-2.  As such, filing a SS-8 and Form 8919 is the proper way.

If for some reason you don't think she should be an employee, you can respond to the IRS notice indicating it was reported as "other income" because it was an isolated, sporadic activity and is not a business.  But almost certainly, she really is an employee.

BobKamman
Level 15

Is this for a 2019 return already filed?  That was fast.  Or did you just find out about this on a 2018 return?

Often it comes down to whether she wants to keep her job.  If she no longer works there, file the SS-8.