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    2 Replies Latest reply on Oct 18, 2008 4:41 PM by NoBullFunding

    one time consulting fee question

    FreeM96 Wayfarer
      This may sound trivial, but I would still like to know.

      My ex-employer wanted some quick inputs on work I;d done while I was employee. He offered to pay consulting fees of $100/hr for it, to provide ad-hoc as and when required. I consulted - for exactly 1 hr - and was compensated exactly $100. My SSN was used for tax id ( hadn't registered my own company at that time).The company was acquired eventually and this consulting didn't go farther and has ended.
      How are taxes owed on this self-employed-income?

      Thanks in advance.

        • Re: one time consulting fee question
          Lighthouse24 Ranger
          If I'm understanding the situation correctly, I think it depends on how your ex-employer reports it. If the $100 is shown in box 3 of the 1099 that you'll receive early next year (or if they fail to issue a 1099) then you would enter $100 on the "Other Income" line of your 1040 personal return. If the $100 is shown in box 7 of the 1099, then you would complete a Schedule C and show the income there (your "business" name/info would simply be YOUR name/info if you didn't really have a business as such) and you'd include that Schedule C and the "Net Profit" shown there on your 1040 personal return. In either case, it ultimately just becomes another $100 of income on which you'll pay personal income tax. Hope that helps. Best wishes.
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          • Re: one time consulting fee question
            NoBullFunding Scout

            Lighthouse is correct. It's income no matter how you slice it (or how they report it). Even if they don't report it, it technically is income but the IRS isn't going to dedicate any resources to busting you over $100.