- quote -

As you probably now realize, the IRS wants to know here what
kind of work you did as a contractor.

The code identifies the kind of work. It doesn't identify
you or your client.

Choose an appropriate code from the list TurboTax provides.

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- quote -

If you're looking at the TurboTax screen saying "Enter your
business code," click where it says "See List" and choose
from the codes in the pop- up list.

The list shown includes the most common codes. To access a
complete list, look at the bottom of the pop-up box and
click on "Business Codes".

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Rod wrote:

- quote -

You don't need a "business license" for Uncle Sam.

- quote -

There is a business code for "Consultants", which I think
covers your work; there might be something better, but don't
sweat it.

All you need at most is a well executed Schedule C. Find
instructions and follow the detail. Make an honest effort to
follow it. File what you produce. That's the spirit of the
IRS rules, I believe.

Schedule C is also a good place to tally your expenses (no
self-employed work ever proceeds without expenses). Auto
mileage, prorated depreciation on equipment (you computer
and peripherals), health insurance. etc. are all candidates.
It's really acknowledgment of free enterprise and
entepreneurism, in my opinion. So go for it.

If you have no ideas for 1005, then set up early-on a
Schedule C worksheet for '06.

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Don't worry about entering the business code. The IRS uses
them for statistical purposes and there is no penalty that I
am aware of for not putting the code on your tax return.

Rudy
www.LizcanoTaxServicesLLC.com

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Don't worry about entering the business code. The IRS uses
them for statistical purposes

Over my 20 year IRS career, I saw literally thousands of tax
returns with Schedule C in which the business code was not
entered and no one at the IRS cared about it and there is no
penalty that I am aware of for not putting the code on your
tax return.

Rudy
www.LizcanoTaxServicesLLC.com

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"some thing" <Kylepro[at]gmail.com> wrote:

- quote -

Thank you, everyone, for this great feedback.

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"jeff in Atl" <jeffgodfrey[at]nospam.hotmail.com> wrote:

- quote -

You may, but you may also find that humility won't get you
through an audit. If your fact pattern fits OP's, you should
be reporting this income on Schedule C and paying
self-employment tax. The fact that it's sporadic doesn't
exclude it from the definition of self-employment.

--
Phil Marti
Clarksburg, MD

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Like it or not, you do have your own business for tax
purposes. Which means you have to fill out a schedule C.

the business code that's perplexing you is the North
American Industry Classification System (NAICS)

http://www.census.gov/epcd/www/naics.html

For example, if you enter "programming" into the search box
in the upper left at that page, you'll get a listing of
everything containing programming. From there, find which
NAICS best matches you.

cheers,
Thng

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Rod" <Rod[at]NO.SPAM> wrote:

- quote -

From the Sched C instructions:
An activity qualifies as a business if your primary purpose
for engaging in the activity is for income or profit and you
are involved in the From Business activity with continuity
and regularity. For example, a sporadic activity or a hobby
does not qualify as a business.

May I humbly suggest that the $1000.00 should go under the
"Other Income" line as a sporadic activity? This is how I am
doing this.

J

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- quote -

The principal business code is just a number that represents
a general category that your business falls into. You pick
the code from a list in the IRS instructions. To access the
list in TurboTax, on the interview screen where it asks you
to enter your business code click the "See List" link next
to the box where you are supposed to enter the code. You can
also find the list on pages C-8 through C-10 of the IRS
instructions for Schedule C, which you can download from the
IRS web site at the following link.

http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Code 541510, "computer systems design & related services,"
might be appropriate for you.

Bob Sandler

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"Rod" <Rod[at]NO.SPAM> wrote:

- quote -

Look it up in the Schedule C instructions. It's a six-digit
statistical code. Rumor has it that all "9"s works.

--
Phil Marti
Clarksburg, MD

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My normal job is working as a senior programmer analyst.
During 2005 I had one outside, contractual job that I did,
for which I earned $1000. That is the only contractual job
I did during 2005. One of the people I worked with on this
job recommended to me that I not get some sort of business
license (or whatever it is called, I cannot remember any of
the terms at this point) if all I was going to do was the
one job. Since that is all I did, then I took his advise
and didn't get a business license (or whatever it is
called).

I'm using TurboTax Deluxe 2005 to do my income taxes for
2005. It wants to make me into a business, however (even
though I gave it my proper title from my regular job), and
now for Schedule C it is asking me for something called a
Principal Business Code. I have absolutely no idea what
that is; and I certainly don't have one.

So, what am I supposed to do?

Rod

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