Level 4

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Any way to report SE income as other income and still calculate SE tax?

Forum|Forum|1 year ago
March 13, 2025
4 replies
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I've seen a few new clients this year who have a 1099 Misc or NEC of a fairly minimal amount and no expenses. Their previous tax guy reported the income directly on Schedule 1 as other income, and then somehow did a Schedule SE to report that income as Self Employemnt and calculate the tax on it. Is this doable in Proseries? Can I get SE to calculate and bypass preparing a schedule C?

Thanks in advance for any help

ProSeries Professional

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Best answer by BobKamman

If you click through from Schedule SE you can find the "Schedule SE Adjustments Worksheet," where you can enter the amount on Part 2, Line 4, "Other SE income reported as income on Form 1040, line 1h"

To get an entry on line 1h, you click through to the "Wages, Salaries and Tips Worksheet" and enter the amount on Line 7 under "other earned income."

Probably easier just to do a Schedule C. Edited to add: And that way you get the Form 8995 for the QBI.

Just-Lisa-Now-

Intuit Community Champion

Theres no easy way to mark a 1099MISC as SE income without a Sch C, the Sch C-EZ came in handy for that, but they took it away.

You may be able to open the SE worksheet and input figures? I've never tried it.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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dhoytAuthor

Level 4

Yeah I've been looking there but can't fins any way to do it on the SE.

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TaxGuyBill

Level 15

From the 1040 (Schedule 1) Instructions:

"Do not report on lines 8a through 8z any income from self-employment or fees received as a notary public. Instead, you must use Schedule C, even if you don’t have any business expenses."

https://www.irs.gov/instructions/i1040gi#en_US_2024_publink10001837

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dhoytAuthor

Level 4

I wouldn't typically try to do this and have aways reported this type of income on Schdule C. But I've seen it done the way I described by other tax preparers/CPAs a few times. They were not using Proseries. But yes according to your refernce it is supposed to be done on Schedule C no matter what. Thanks for the info.

Also, the 1099 misc were for income earned for work. It was incorrecty reported on MISC, probably should have been NEC. I asked the client to describe what the payments were for and it was working occasionally at an art gallery type of place for events.

qbteachmt

Level 15

"it was working occasionally at an art gallery type of place for events."

So, not "other income" at all. General labor or service as Schedule C. And all the earnings, not just because two forms showed up. Remind them, this is how you get Social Security credits, not that it might matter in a few months.

Don't yell at us; we're volunteers

qbteachmt

Level 15

"who have a 1099 Misc or NEC of a fairly minimal amount and no expenses"

These informational forms are only required in certain circumstances, but people can have made more money than this in the endeavor. You could make a million $ from being a notary and would never get a 1099-NEC for the service. It still is reported.

1099-Misc is for different reason than 1099-NEC. NEC would be Schedule C, but MISC might be royalties or rent. Are you trying to enter Rent as subject to Self-employment tax?

Don't yell at us; we're volunteers

BobKammanAnswer

Level 15

If you click through from Schedule SE you can find the "Schedule SE Adjustments Worksheet," where you can enter the amount on Part 2, Line 4, "Other SE income reported as income on Form 1040, line 1h"

To get an entry on line 1h, you click through to the "Wages, Salaries and Tips Worksheet" and enter the amount on Line 7 under "other earned income."

Probably easier just to do a Schedule C. Edited to add: And that way you get the Form 8995 for the QBI.

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dhoytAuthor

Level 4

Bob I think you are exactly right. It looks like that adjustment on the SE would work. But then they miss QBI. QBI is probably worth the additonal cost and effort of doing a schedule C, which according to IRS instructions is the correct way to do it anyway.

Thanks to all who contributed to the discussion!

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