# Tax question - extra income **URL:** \ **Category:** Factual Questions\ **Created:** [January 31, 2006, 9:46pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408 "2006-01-31T21:46:51Z")\ **Posts on this page:** 7\ **Page:** 1
**Author:** ![Ghanima](https://avatars.discourse-cdn.com/v4/letter/g/9e8a1a/32.png) [@Ghanima](https://boards.straightdope.com/u/Ghanima)\ **Post date:** [January 31, 2006, 9:46pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408/1 "2006-01-31T21:46:51Z")
Last year I did a one-time consulting gig for a flat $720 cash, untaxed. All I have is the stub from the check. So how the heck do I report this? I’d just add it to my total income but I have no W-2 to attach since I wasn’t actually an employee of the company. I don’t own a business, this was just a one-time favor. I’d just ignore it but I have a moral hangup about doing that. Anyone know how I should address this? I’ve checked the IRS web pages and still feel very unsure what to do. Should I just add it in to my wages? ---
**Author:** ![Yeticus\_Rex](https://avatars.discourse-cdn.com/v4/letter/y/a698b9/32.png) [@Yeticus\_Rex](https://boards.straightdope.com/u/Yeticus_Rex)\ **Post date:** [January 31, 2006, 10:18pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408/2 "2006-01-31T22:18:32Z")
Ask the person who you consulted for furnish you a 1099-MISC form. You would give him/her your EIN# (if you have one) or your SS# instead. Also give them your name and adress for the form. They should have furnished you this by the deadline, which is today (1/31/06) for any combined payments to you totaling over $600 (I still think this is the current threshhold) for the 2005 tax year. The 1099-MISC form is similar to an additional W-2 form which is mostly used by consultants, independent contractors, and other non-employees of the payer. [IRS 1099-MISC form with instructions (pdf file)](http://www.irs.gov/pub/irs-pdf/i1099msc_05.pdf) ---
**Author:** ![Billdo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/billdo/32/315_2.png) [@Billdo](https://boards.straightdope.com/u/Billdo)\ **Post date:** [January 31, 2006, 10:21pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408/3 "2006-01-31T22:21:38Z")
> [@Ghanima](#): > > Last year I did a one-time consulting gig for a flat $720 cash, untaxed. All I have is the stub from the check. So how the heck do I report this? I’d just add it to my total income but I have no W-2 to attach since I wasn’t actually an employee of the company. I don’t own a business, this was just a one-time favor. I’d just ignore it but I have a moral hangup about doing that. > > Anyone know how I should address this? I’ve checked the IRS web pages and still feel very unsure what to do. Should I just add it in to my wages? I am not your tax professional, and this is not my area of specialty. You should consult an experienced tax advisor for a real answer to this question for your situation. That being said, there’s a line “other income” that I used last year to put the $15 per day that I got for jury duty. I wouldn’t put it in the wages line, because the IRS expects to have your wages agree with the W-2 forms you get. If you had a consulting business, or expenses to deduct against the income, you could fill out a Schedule C or C-EZ, but that might be going overboard. Good luck. ---
**Author:** ![Billdo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/billdo/32/315_2.png) [@Billdo](https://boards.straightdope.com/u/Billdo)\ **Post date:** [January 31, 2006, 10:29pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408/4 "2006-01-31T22:29:56Z")
Actually, ignore what I previously said. The Form 1040 instructions (Page 29 for Line 21) say you have to use a Schedule C or C-EZ. [quote=IRS Form 1040 Instructions] Do not report on this line any income from self-employment or fees received as a notary public. Instead you must use Schedule C, C-EZ or F, even if you do not have any business expenses. Also do not report any non-employee compensation shown on Form 1099-MISC. Instead, see the chart on page 15 to find out where to report that income.[/qupte] ---
**Author:** ![Yeticus\_Rex](https://avatars.discourse-cdn.com/v4/letter/y/a698b9/32.png) [@Yeticus\_Rex](https://boards.straightdope.com/u/Yeticus_Rex)\ **Post date:** [January 31, 2006, 11:06pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408/5 "2006-01-31T23:06:54Z")
Ok, I see **Billdo** and I are giving different answers for different parts of the reporting of this $720. My reply was in regards of what responsibilities the payer has towards you w.r.t. filing and giving you a copy of the 1099-Misc form. (Box #7 would be the where the $720 should be listed on the form). That should have been given to you by today. A copy of that 1099-Misc. should be filed by that payer to the IRS by 2/28/06 or 3/31/06 (Depending on the type of media used). So when you file on you 1040, you would include that 1099-Misc along with your W-2(s) and the IRS should be able to match those copies with what they have by 4/15/06. **Billdo** is pointing out WHERE that $720 should be listed on the 1040 form, which is completes the whole process of the reporting the income. ---
**Author:** ![Drum\_God](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/drum_god/32/44_2.png) [@Drum\_God](https://boards.straightdope.com/u/Drum_God)\ **Post date:** [January 31, 2006, 11:10pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408/6 "2006-01-31T23:10:42Z")
I just use TurboTax. It asks if I have any other income. I tell it what the income is and where it came from. It fills out the appropriate forms. No big deal. Well worth the twenty bucks for the software. ---
**Author:** ![What\_the](https://avatars.discourse-cdn.com/v4/letter/w/f4b2a3/32.png) [@What\_the](https://boards.straightdope.com/u/What_the)\ **Post date:** [January 31, 2006, 11:37pm UTC](https://boards.straightdope.com/t/tax-question-extra-income/342408/7 "2006-01-31T23:37:48Z")
[QUOTE=Billdo] Actually, ignore what I previously said. The Form 1040 instructions (Page 29 for Line 21) say you have to use a Schedule C or C-EZ. > [@IRS Form 1040 Instructions](#): > > Do not report on this line any income from self-employment or fees received as a notary public. Instead you must use Schedule C, C-EZ or F, even if you do not have any business expenses. Also do not report any non-employee compensation shown on Form 1099-MISC. Instead, see the chart on page 15 to find out where to report that income.[/qupte] You do not have to use Schedule C unless you are in the business of consulting on a regular basis. If you do use Schedule C you will likely owe self-employment tax on your net self-employment income after related expenses at the rate of approx. 15% in addition to the income tax on it. If you can get the net below $400 you don’t owe self-employment tax. If not in a trade or business you can report it on the other income line on the front page. I’d attach a scedule referring to it as “one time only” services or something to that effect.