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Get your taxes done using TurboTax
Hi @DarcyDean66
Thanks for reaching out to TurboTax Live today. There are no limits or a maximum amount earned as a non-employee being paid on Form 1099NEC. The sky is the limit, be sure to keep good records or your business deductions.
The IRS requires you to report income regardless of the amount earned or whether you get a 1099 or not. The additional money earned (gross income) will be treated as miscellaneous or business income and can be subject to both regular income tax and self-employment tax. Please see the link provided by @zclar regarding the IRS minimum filing requirements and @K M W confirming that all income is required to be reported, also the additional TurboTax link,
According to the IRS “self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves.” The self-employment tax rate is 15.3%, with 12.4% for Social Security and 2.9% for Medicare.
There usually are ordinary and necessary business deductions allowed to offset your gross income to calculate the net business income reported. Net business income is combined with all other sources of income, such as wages, unemployment, investment income, etc. and included as taxable income on the Individual return. As @Opus 17 has replied, it is important not overlook these business deductions, which reduces your gross income. The net income will be treated as trade or business income on Schedule C, Profit or Loss from Business.
Below are some helpful links for self-employed individuals:
What Is a Schedule C IRS form? - TurboTax Tax Tips & Videos
*** What self-employed expenses can I deduct?
Taking Business Tax Deductions - TurboTax Tax Tips & Videos
Thanks for using TurboTax Live,
Bonnie
Quality Reviewer Tax Expert
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