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westwater23
New Member

Do I still need to file as a small business when earning only $177 in 2016 and not getting a 1099 misc? What about Schedule C? I've never taken any business deductions.

no effort to grow business, no regular or any activities, not concerned about profit.  quarterly payments are irregular.
1 Best answer

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AmandaR1
New Member

Do I still need to file as a small business when earning only $177 in 2016 and not getting a 1099 misc? What about Schedule C? I've never taken any business deductions.

Yes, if you're filing a tax return, the rules require all self employed income to be reported on schedule C (regardless of1099-Misc received or not). If you're not required to file a tax return, then the amount would not need to be reported because it's under $400. In meeting the "business" criteria, it only applies to the activities you did for the $177 and related time period.

When you work, there's only two ways the income is taxed; as an employee (W-2) or as self-employed on a schedule C. However, since your net business income (revenue minus expenses), is below $400, there will be no self-employment taxes (schedule SE) on your return and you won't need to upgrade to the Self-employed Edition of TurboTax since you have no expenses. 

Note: if you only earned the money and didn't receive pay until 2017, as a cash basis tax payer (most common) you report income when received. You would report this in 2016. To check if you're required to file, see below: https://ttlc.intuit.com/replies/3302274



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1 Reply
AmandaR1
New Member

Do I still need to file as a small business when earning only $177 in 2016 and not getting a 1099 misc? What about Schedule C? I've never taken any business deductions.

Yes, if you're filing a tax return, the rules require all self employed income to be reported on schedule C (regardless of1099-Misc received or not). If you're not required to file a tax return, then the amount would not need to be reported because it's under $400. In meeting the "business" criteria, it only applies to the activities you did for the $177 and related time period.

When you work, there's only two ways the income is taxed; as an employee (W-2) or as self-employed on a schedule C. However, since your net business income (revenue minus expenses), is below $400, there will be no self-employment taxes (schedule SE) on your return and you won't need to upgrade to the Self-employed Edition of TurboTax since you have no expenses. 

Note: if you only earned the money and didn't receive pay until 2017, as a cash basis tax payer (most common) you report income when received. You would report this in 2016. To check if you're required to file, see below: https://ttlc.intuit.com/replies/3302274



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