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Author: bradyn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: How to report misc odd-job income? Date: 7/2/2000 6:54 PM
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I recently earned a small amount of money for cleaning the carpets at a local office ($100) and painting a rental house owned by a relative ($120).

I am unsure how to report these on next year's return. Searching through various IRS pubs yielded no definitive answer. From what I've seen, my options might include:

Carpet cleaning:
a) Self Employment income
b) Miscellaneous income (doesn't meet the $600 requirement for 1099-MISC, so none was issued, might be able to get them to fill one out anyway)
c) Regular wages (though a W-2 was refused, so that puts a stop to this)

House painting
a) SE income
b) Miscellaneous income

I'd like to place these earnings in a Roth IRA, as they are my only earned income so far this year (I'm 16). Just want to make sure I have all the bases covered as far as reporting and eligibility are concerned. I would hate to have them ruled as excess contributions later down the road.

Miscellaneous income seems to be the best choice, as I'm not regularly employed as a carpet cleaner or painter. However, without 1099-MISC's, I'm a little leery of doing this. Also, can income reported as "miscellaneous" be counted towards an IRA contribution?
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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37097 of 121061
Subject: Re: How to report misc odd-job income? Date: 7/2/2000 7:44 PM
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Use Schedule C. Any catagory that's 1/2 way suitable. Don't take any deductions. Ed


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Author: ratsauce Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37102 of 121061
Subject: Re: How to report misc odd-job income? Date: 7/3/2000 9:59 AM
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bradyn writes ...
>I'd like to place these earnings in a Roth IRA, as
>they are my only earned income so far this year (I'm
>16).
...
>I am unsure how to report these on next year's
>return.

Get form 1040, schedule C, and form SE(short form)
and instructions at the IRS website.

You are self employed/sole proprietor, material
participant, cash method of accounting,
category (services: other(812990?)).

Your gross income will show on Sched C lines
1, 3, 5 and 7. You probably don't need to
worry about goods sold, or
depreciation.

I disagree with Ed about deductions. If you bought
things for your business operation with your
own money (paint, brushes, carpet machine rental,
etc.) these are business deductions (untaxed) on
sched C lines 8-27.

If your self employment income exceeds $400 you'll
need to file schedule SE(self-employment).

The Roth IRA is an excellent Long Term savings
choice. You are in a low tax bracket, and the
contribution will have many years to grow
tax-free. Consider an education IRA ($500max) if
you will want the money for college. You
can have both types.

-




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Author: edcosoft Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37105 of 121061
Subject: Re: How to report misc odd-job income? Date: 7/3/2000 10:59 AM
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ratsouce; I wouldn't deduct anything, nor did I mention SE because his income is less than $400. No SE and No tax, so might as well maximize his ROTH. He can't avoid the SE if he files a C of over $400 net, but I doubt his earned income will develop any ordinary tax. ed

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Author: bradyn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37118 of 121061
Subject: Re: How to report misc odd-job income? Date: 7/3/2000 11:47 PM
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Okay, so all this entails is filling out a Schedule C (I believe I'm allowed to use a C-EZ, correct?), along with the usual 1040, Sched. D, etc.?

This isn't nearly as complicated as I originally thought it would be. Hope I don't run in to any problems. Thanks for the help.

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Author: bradyn Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 37119 of 121061
Subject: Re: How to report misc odd-job income? Date: 7/3/2000 11:58 PM
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Oh, one more question...would the correct identifying code for the type of business be:

"811490 Other personal & household goods repair & maintenance"

That's about the closest one I can find. Would there be a more applicable category?

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