S-E income

[dbe...@aol.com]

I have a client who is a writer (Schedule C income) and has received a lawsuit settlement for a copyright violation.  My questions is whether the settlement proceeds would be considered self-employment income.

Dale Best

[Lee Reams]

Yes, the settlement proceeds for a copyright violation would generally be considered self-employment income and should be reported on Schedule C (Form 1040). According to IRS guidelines, compensation received as a result of injuries connected with your business, such as patent infringement, breach of contract, or other similar issues, must be included in gross income. Since your client is a writer and the settlement is related to a copyright violation, it is connected to their business activities and should be reported as business income on Schedule C.

Lee

On Jul 3, 2024, at 9:11 AM, 'dbe...@aol.com' via ClientWhysConnect <clientwh...@googlegroups.com> wrote:

I have a client who is a writer (Schedule C income) and has received a lawsuit settlement for a copyright violation.  My questions is whether the settlement proceeds would be considered self-employment income.

 

	Lee Reams Sr., BSME, EA Chief Content Officer CountingWorks Pro | CountingWorks | TaxBuzz | TaxCPE p: 1.800.442.2477 x240 w: www.countingworkspro.com/  e: lee....@countingworks.com
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