Solved
1099-Nec
Hi,
If I receive a 1099NEC for work I did for “under” $600, do I “pay taxes” on it as a independent contractor?
Thanks!
VolvoGirlAnswer
Level 15
October 12, 2024
Expert Reviewed
Yes. 1099NEC is self employment income and you HAVE to file it on Schedule C and pay self employment tax on it. The SE tax is to pay both the Social Security and Medicare tax that wasn't taken out like on a W2 job.
You will pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
Actually they only have to give you a 1099NEC for $600 or more but you still need to report all your income even if you don’t get a 1099NEC. You can fill out Schedule C and enter 1099NEC or Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium or use any of the Desktop CD/Download programs. All the Desktop programs have the same forms, so you can buy a lower version. You just get more help and guidance in the higher versions.
How to enter income from Self Employment
