1099-MISC and Moving Expenses

[Lefty00]

What is the name of your state? Michigan

My wife started a new job last year in April. As part of the package they paid her $3000 for moving expenses. The check was written 2 months after she started working there. For tax documentation they sent us a W-2 for her income and a 1099-MISC with $3000 entered on Box 7 for the moving expense reimbursment. The question I have is do I have to file a Sch. C for this? I don't understand why they sent a 1099-MISC instead of just including the amount in her W-2.

Is the SE tax that I would have to pay on the $3000 less than what would have been paid if they included it in her W-2 or something?

Thanks.

 

[Snipes5]

If box 7 is "nonemployee compensation", then have the company correct the document so it is listed in the box that indicates "other", as this isn't income from self-employment.

You also have the option of putting the income on line 21 and including a statement with your return that it was for moving expenses, but it is better to have the 1099 corrected.

Snipes