i am usually an employee but got stuck with a 1099-MISC - ie resulting in a schedule C and wonderful self-employment tax penalty - when my employer decided to switch defered comp plans to a 401k and "couldn't" roll over from the the prior plan (actually never opened it up for me since they knew the were switching and then ran into a ceiling on the 401K employer contribution so they wrote a check and didnt put it into the salary). ie i have both a (larger) W-2 and a (small) schedule C.

My question is: can I offset all my unreimbursed items such conference fees off of the schedule C rather than the schedule A itemized deductions or will the IRS get upset at that (ie i can almost offset the entire schedule c with these but they wouldnt cross the threshold to be allowed on schedule A)? where would they go? ie under the travel line or individually listed at the bottom of the form?

thanks so much!

Zip Code: 11023

It's not uncommon for health care professionals to receive 1099-Misc forms, and then claim their unreimbursed professional expenses against that income on a Schedule C.

If your total expenses are less than $5k, you'll group all of your professional expenses on one line of the three line form. Otherwise, put the expenses on the applicable line of the schedule C.

Zip Code: 01801

thanks for taking time out of your busy season and responding.

what is the "short 3 line form" you refer to rather than the regular schedule c?

I was hoping to avoid schedule c all-together since i am otherwise just an ful-time employee - after all why should i be paying "extra" self employment taxes just because the employer decided to change defered compensation plans and also decided that they could't roll the allocations over into the "new" 401k (ie non-qualified - they never really even opened up an account for me with the old plan - just held onto the cash to avoid fees).

why they reported it on line 7 of a 1099-misc is not so clear to me.

couln't i just report it as other income and label it "1099"? It really isnt "self empolyed" income per se?

Zip Code: 11023

Check out the Schedule C-EZ available at:

http://www.irs.gov/pub/irs-pdf/f1040sce.pdf.

As long as your total Schedule C expenses are less than $5k, you can usually complete this short form.

Zip Code: 01801