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1040-X, SE income -> misc. Reasonable?

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  • 1040-X, SE income -> misc. Reasonable?

    In the prior year I made some money helping my friend and got some income out of it.

    following factors from the pub 535 apply

    1. I did not depend on income from this activity
    2. This is one-time activity, never before, never after
    3. This activity is way outside what I do, so primary motivations were:
    - to spend time with my friend
    - learn something new by doing it.
    4. no business entity was established.

    I accepted payment in checks, I got no 1099-MISC (my friend was too lazy). I got about 11K, out of which about 6K was the equipment I installed in his basement, about 4K I retained as a profit. I was filing a tax return by myself, so I filed this amount as a self-employed income (schedule C and schedule SE).

    I wonder, today, can I reclassify this income as misc income, report deductions on 1040A and claim back the SE tax?

    How likely is it to trigger the audit?
    How likely is it to trigger the audit if I reduce the amount of the deductions taken?
    Will it still trigger the audit if I reduce the amount of the deductions claimed to a point where I will owe more tax and pay the said tax?


  • #2
    I don't know if you will receive any additional/different information than what you received/will receive on the other forum but you can hold & see.
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