Probably. The amount depends on the type of income it is. Is this self-employment income or from work as an independent contractor? Then you will be subject to 15.3% in self-employment taxes in addition to your regular federal, state and local taxes.
If this is a 1099-NEC or 1099-K from a business, you can enter your income and expenses in the Self-Employment section. To enter your self-employment income click the following:
- Federal
- Income and Expenses
- Show More next to Self-Employment
- Start or Revisit next to Self-Employment
- Yes, to you have any self-employment income or expenses
- Enter the type of self-employment work you do
- Click through a few more screens and you will get to a screen that says "Your XX info"
- Click Looks good
- Then you will come to a screen that says Let's enter the income for your business. It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks. Select the one that applies to you and hit continue
- If you do not select one, it will not let you enter your income
- Enter your self-employment income on the next screen
- You can then follow through and enter your expenses.
If this is a 1099-K you received for selling personal items, you will enter it as follows:
- Federal
- Income
- Show More next to Other Common Income
- Start next to Income from Form 1099-K
- Enter your 1099-K
Next you will select
- Federal
- Income
- Show More next to Investment Income
- Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Select Other
- Continue through and select Other again for the type of investment
- Answer how you obtained the items you sold
- You will need to enter the selling price, dates and the cost basis of the items
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