I drive a truck for a small operator. I have no stake in the business. Paid in cash. Do I really need a Schedule C?

[bvdowings]

Form 1099-NEC

[DoninGA]

If you are not an employee then you are a self-employed independent contractor and therefore you have a business.  You report your business income and expenses on a Schedule C.

Go to this TurboTax website for information concerning a Schedule C - https://turbotax.intuit.com/tax-tips/self-employment-taxes/-what-is-a-schedule-c-irs-form/L7v0iDelI

[VolvoGirl · Accepted solution]

Yes you are the owner of your own self employment business.  You are in business for yourself.  Use your own info.  The people or company that pays you is your customer or client.  You are considered to have your own business for it.  YOU are the business.

You need to fill out schedule C for self employment business income and pay self employment tax in addition to regular income tax on it.  The SE tax is to pay Social Security and Medicare tax that wasn't taken out like on a W2.

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version.

How to enter income from Self Employment

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-

employment/00/26653

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax.  You pay 15.3% SE tax on 92.35% of your Net Profit 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.  

[Mike9241]

apparently the operator is treating you as an independent contractor.  there is not enough info to determine if this is correct treatment or should you have been treated as an employee getting a W-2.

you might want to complete form SS-8 for your own purposes.  

https://www.irs.gov/pub/irs-pdf/fss8.pdf 

if you determine you should have been treated as an employee file the SS-8 with the IRS (this should have been done months ago like shortly after getting the 1099-NEC)

Instructions for Form SS-8 (Rev. March 2023) (irs.gov)

and here's guidance from the IRS employee vs independent contractor.

https://www.irs.gov/newsroom/worker-classification-101-employee-or-independent-contractor 

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if you are an IC, schedule C is required. 

the benefit is that IC expenses are deductible against the income. you may further reduce your taxes if you have self-employed health insurance and/or a retirement plan. you would also be entitled to a QBI deduction. the downside is that the self-employment tax is your responsibility.

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on the other hand, if you deem yourself an employee you need to complete a substitute W-2 from 4852

the IRS says you must take the following steps before filing Form 4852
• Attempt to get your Form W-2 from your employer (it would also have to file an amended 1099-NEC) before contacting the IRS or filing Form 4852.

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if you conclude you are an employee, but the iRS concludes from the info it gathers you're an IC, there would be penalties and interest if your taxes were underpaid by claiming employee status. 

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[AmeliesUncle]

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@Mike9241 wrote:

on the other hand, if you deem yourself an employee you need to complete a substitute W-2 from 4852

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They would file Form 8919, not 4852.