Elliott Jones is an employee of ABC Company. He also works as an independent contractor. He received a Form 1099-NEC from Company XYZ for work he did during the current tax year. Elliott painted the XYZ offices on weekends outside of his regular job. XYZ Company reported that it paid Elliott by issuing a 1099-NEC indicating $1,500 in non-employee compensation in Box 1 of this form. How should Elliott report this income item on his tax return?

a) Elliott is not required to report this income.

b) Form 1040, other income line

c) $1,500 on Schedule C

d) Add $1,500 to his W-2 wages and report on line 7.