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Author: Foolferlove Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121175  
Subject: Income: Schedule C vs. Misc Date: 5/1/2012 9:01 AM
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Hi all-

In addition to my regular job, I sometimes submit to a continuing medical education publication a short article which reviews/summarizes a recent medical research paper.

Prior to this year, I have done this about once a year. The publisher send me a check, and no tax related forms. The amount I earn for each review is $300, and I have claimed it as miscellaneous income.

I now anticipate writing about 3-4 of these articles per year for an total income of about $1000. I was wondering whether I was obligated to file this as self-employment income. Or if not, whether there was any benefit to doing so anyway. The total income from my day job just barely exceeds the social security wage base. So as I understand it, I will not owe Social Security taxes on this income if I report it on Schedule-C (but will owe medicaid). I don't have any expenses to deduct.

It would be much easier to file this as misc income of course, but that may not be the correct thing to do. Although, it doesn't seem that difficult to file schedule-CEZ.

Also, IF there is some leeway on this, is there any potential benefit to having SE/business income? Perhaps this would allow me to find some addition tax-deferred investment space, such as a SEP/SIMPLE/solo 401k? Although, for $1000/year, the effort or costs of setting up such an account may negate any benefits.

Thanks,
FFL
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