Schedule C vs other income

[Opfor77]

SORRY FOR ALL CAPS....CLIENT HAS A SCHEDULE C SOLE PROPRIETORSHIP AS A PILOT. HE SIGNED ONTO AN AIRLINE CADET TRAINING PROGRAM TO EVENTUALLY BECOME AN EMPLOYEE PILOT OF THE AIRLINE ONCE HE REACHES A CERTAIN NUMBER OF FLIGHT HOURS. AFTER SIGNING ONTO THE CADET PROGRAM, THE AIRLINE GAVE HIM A $7,500 BONUS. HE RECEIVED, FROM THE AIRLINE, A 1099-NEC WITH NONEMPLOYEE COMPENSATION OF $7,500. DOES HE COUNT THAT AS PART OF HIS SCHEDULE C GROSS RECEIPTS, OR DOES HE JUST PUT IT AS OTHER INCOME ON HIS TAX RETURN?

[Skylane]

Sch C income.

its all about building hours for an aspiring pilot… its common for a ‘jump’ or ‘Banner’ operations to pay pilots as ICs requiring sch C. I’d put it all on the same sch c.

[BobKamman]

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.