My client who performs religious ceremonies at people's residences received a 1099 misc. form from one individual. Box 3 shows $20,000. This is the first time he received this from. He also works for another company as an employee and received a W2.
Can I link this Box 3 amount to Schedule C, and take auto and other expenses for him by creating self-employed business of conducting religious activities.
Thank you in advance.
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That sounds like the correct course of action to me.
You cannot include for purposes of the Sched C any vehicle use or supplies expense or other costs that relate to the W2 job.
@singh wrote:My client who performs religious ceremonies at people's residences received a 1099 misc. form from one individual. Box 3 shows $20,000.
Out of curiosity, did ONE individual pay this person $20,000 for his own religious ceremonies? [Wow]. Or is that person that paid $20,000 a business that set up religious ceremonies for several other people?
Did you ask about this payment? Because box 3 could be some sort of Mission Support. Box 7 would be used for Services Provided.
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