Hi, folks. I began moonlighting outside of my residency last year (2007) and just received my 1099-MISC form from the outside hospital. I was surprised, and baffled, by their entering my gross pay amount in Box 6, "medical and health care payments," rather than in Box 7 for non-employee compenstation. Do you guys think this is a mistake on the hospital's part? Does it make a difference to IRS whether my moonlighting pay was classified in box 6 or 7? Does this mean I won't have to pay self-employment taxes?

Thanks a lot.
SC

Zip Code: 02138

I don't think it matters whether they reflect the money they paid to you in Box 6 or Box 7 or the 1099-Misc. Either way, you should report the income on line 1 of your Schedule C, and then claim your unreimbursed professional expenses directly against that income. You will also be subject to self-employment taxes on this income too.

Zip Code: 01801

What if the payments are received for administrative work from the hospital? Would it still be reported on Sch C? If yes, what should be the description of the business and the business activity code for a physician who is salaried and does not have a business per se?
Thank you.

Zip Code: 38060

If you get paid as an independent contractor, you have a business, and will need to report that income, and the corresponding payments, on a Schedule C.

Below is a link to all the business codes to use on the Schedule C. You'll need to find the one that bests describes this business.

http://www.irs.gov/instructions/i1040sc/ch02.html#d0e1249


For physicians, I often use the code 621111 even if that person isn't performing medical services, but is a physician acting in another capacity.

Zip Code: 01801