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Angie
Angie, Tax Preparer
Category: Tax
Satisfied Customers: 225
Experience:  Bookkeeping, Profit and Loss, Balance SheetsAll types of US Taxes, Tennessee taxes, Personal, business, payroll, sales tax etc.
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I received 1099 misc fee. What kind of deductions

Customer Question

I received 1099 misc for relocation fee. What kind of deductions are allowed for this income?
Submitted: 9 months ago.
Category: Tax
Expert:  Angie replied 9 months ago.
I will need more information to answer you fully. In what box is the amount listed on the 1099-misc?What expenses did you have associated with the money you received for relocation?How much did you receive for relocation?
Customer: replied 9 months ago.

The relocation amount is $19500. And I have no expenses related to it. Just my landlord asked me to move early then contracted because he was the part of some litigation involving this property.

Customer: replied 9 months ago.

box 7

Expert:  Angie replied 9 months ago.
This makes it a little difficult as far as expenses go. In my opinion, I would report this as "other" income,which appears on line 21 of the 1040. This will make the income taxable as far as federal income tax...however it will exclude it from being subject to self employment tax which is what would happen if you were to report it on the schedule C.In order to use any deductions for this you would need to report it on the schedule C,as if you were self-employed and then you could write off everything you spent to relocate. (movers, supplies, deposits,etc )
Customer: replied 9 months ago.

Thanks

Expert:  Angie replied 9 months ago.
You're welcome! Have a great night!