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Pampered Chef: Wife is new to Papmperd Chef - Tax Question

  1. E R

    E R

    6
    0
    Hello all,

    My wife started as an Independent Consultant last year and did fairly well in the few months since she started.

    I do our taxes, and am perplexed that both Box 3 (Other income) and Box 7 (Nonemployee compensation) are filled in on her 1099-Misc. The Other income was the start-up kit, PC bucks to be used later, and other non-commission stuff.

    TaxAct doesn't care if both boxes are entered, but TurboTax won't let both boxes be entered, and says two separated lines should be entered.

    Self employment tax changes if Box 3 figures do not go on Schedule C, and the IRS says Other income is not used to calculate self employment tax.

    I'm leaning toward putting it all to Schedule C, but can find no good answers.

    Thanks for listening, and I will also search the forums to see if I can find a good answer.

    Eric
     
    Mar 12, 2018
    #1
  2. Admin Greg

    Admin Greg Senior Member Staff Member

    2,342
    189
    Welcome to CS!
     
    Mar 12, 2018
    #2
  3. Vanita

    Vanita

    1
    0
    Enter as if you received 2 forms. One with just box 7 filled in and one with just box 3 filled in.

    I’m an accountant.
     
    Apr 4, 2018
    #3
  4. E R

    E R

    6
    0
    Thanks very much!
     
    Apr 11, 2018
    #4
  5. ShellBeach

    ShellBeach Veteran Member

    1,264
    24
    Ingredients bought to practice recipes are a legit business expense
     
    Apr 13, 2018
    #5
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