1099-Misc box 7 non employee compensation not being treated as SE income?

[ERIC J]

Not being reported on Sch C.  Why isn't system calculating SE tax?  Do I need to tag it as subject to SE income somehow/where?  thanks!  eric j

[IRonMaN]

Please stick to one post.

[Just-Lisa-Now-]

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 wrote:
Re: 1099-Misc box 7 non employee compensation not being treated as SE income?

Not being reported on Sch C.  Why isn't system calculating SE tax?  Do I need to tag it as subject to SE income somehow/where?  thanks!  eric j

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Box 7 should go to Sch C

[ERIC J]

Because I can justify why the activity related to the SE income doesn't rise to the level of a trade or business.  There is no requirement that SE income must be reported on a Sch C.  I avoid including Sch C if possible.  thanks

[Just-Lisa-Now- · Accepted solution]

If its not a trade or business, why would it be subject to SE?

With a 1099MISC and a figure in Box 7, IRS computers will be looking for Sch C, Id put it on there and then mark NO to the QBI question so that its not considered a trade or business.

Im not sure how to make the SE income and Sch SE flow anywhere without the Sch C, sorry.

[ERIC J]

Thanks Lisa!  I agree that tagging it to the Sch C is the cleanest trail.  However, over the years I have reported 1099-Misc as Other Income and included Schedule SE rather than on Sch C without generating IRS CP 2000 notices.  I'm not aware of a REQUIREMENT that SE income gets reported on a Schedule C.