Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.