How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15328
Experience:  15years with H & R Block. Divisional leader, Instructor
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

How should we report income from show-businesss (acting)

Customer Question

How should we report income from show-businesss (acting) residuals earned by a deceased spouse? We normally receive a 1099 Misc for this but we are not a business entity, just a surviving spouse receiving these residuals.
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


As they are not your business income you would report that on line 21 as OTHER INCOME.

If you are active in the profession related to the residuals (very like royalties) you receive, the money will be considered compensation subject to self-employment taxes. If not, you won't be assessed the self-employment tax

Net profit from self-employment over $400 is subject to self-employment tax. Once expenses have been properly allocated, insure that any net profit or loss is considered in determining the taxpayer's net self-employment income. Residual payments that do not have FICA withholding should be assessed self-employment tax if a net profit is realized after related expenses, if any, are deducted.

Please remember to rate my service excellent once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!