Discussion:SE tax on residual insurance commissions?

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Discussion Forum Index --> Basic Tax Questions --> SE tax on residual insurance commissions?
Discussion Forum Index --> Tax Questions --> SE tax on residual insurance commissions?

Kathyt (talk|edits) said:

30 October 2009
New client, has about 1,000 in income on 1099 Misc., residual pymts from his commission on life insurance sales, he was an insurance salesman a long time ago but he hasn't done this type of work in 10 years. Is it still subject to SE tax now? I know when he was selling it he was working for it, but he hasn't done this type of work in 10 years.

Trillium (talk|edits) said:

30 October 2009
Maybe look at Sec. 1402(k)?

Larryfred (talk|edits) said:

30 October 2009
Yes, it is still subject to SE taxes. Report the income on Sch C. Residual sales commissions income retains its character as self employment income.

Larryfred (talk|edits) said:

30 October 2009
should have read it is STILL ETC

R2 (talk|edits) said:

31 October 2009
KathyT, see Sec. 1402(k) for an exclusion available to certain life insurance salesmen.

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