- quote -

Well, I say: It depends :^)

First, if this medical study did require a number of visits
to the hospital or lab etc, say 10 visits over the course of
3 months, that seems regular enough to be the trade or
business of being a medical subject.

And if the 1099-Misc is correct, and this is nonemployee
compensation, it should qualify you for EIC on its own,
without need to trasnfer to Line 7.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Rick Merrill wrote:
- quote -

Oh NO! Not a chance, Rick.

First off, if you try to re classify said payments as wages
versus 1099 income, you need to submit an SS8 form both with
the return AND to IRS independently; also then calculate
the 7.65% of 1275 on form 4137 for her to pay. Admittedly,
IF IRS sustained the position that this was common law
employment then EIC would be feasible.

However this was NOT common law employment, in fact as I
pointed out in other response, not even subject to SE tax.

A paper return however is waranted, IF the amount is
reported as non employee compensation instead OF the right
place, block 3 on form 1099r.

Whew.

ChEAr$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

P Rucker wrote:

- quote -

If this was a one-time event I would treat it as Other
Income on Line 21 of the 1040. If she is in the habit of
participating in medical studies for which she is paid, then
she is self-employed and would have to report the income as
such.

--
Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

P Rucker wrote:

- quote -

1. File a paper return: write "1099 misc" on line 7 and
enter the amount as a wage.
2. See if she qualifies for EIC.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

P Rucker wrote:

- quote -

I think a really good case could be made for her not being
saddled with se tax, since she had no intention of
maintaining a trade or business, and since this was a one
time event.

But the return should of course report the 1275 as other
income AND if said 1275$ shows up in non employee
compensation block on the 1099, a hearty explanation should
be included and a paper return filed.

ChEAr$,
Harlan Lunsford, EA n LA
Sun 13 Feb 2005

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"P Rucker" <pamela.rucker[at]comcast.net> wrote:

- quote -

It seems to me this should not have been coded as NEC. I'd
report it on line 21 of the 1040.

--
Phil Marti
Clarksburg, MD

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I have an elderly, deaf client who received a 1099MISC for
$1275 for participating in a medical study. So, she owes
income tax and self employment tax? Any way to avoid the
self employment tax? She didn't know she was in the business
of being a medical study participant - at the most, I would
think she should have been treated as an employee of the
hospital and that would save her $100.

Thanks,

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->