Hi Laurad14!
Thank you for this interesting question. Let's have a closer look:
Filing Status: Since your husband's income is relatively low, you can still file jointly as a married couple.
This simplifies your process and offers more tax benefits.
Reporting Income: His self-employed income is reported on your joint tax return.
He should receive a Form 1099-NEC from the business he worked for. If not, report the
income that he was paid in cash or check. This income is reported on a Schedule C as an
independent contractor.
Reporting Expenses: Keep good records to document all expenses incurred. Among these could be
mileage, tools, or items necessary to do the current job.
Self-Employment Tax: Since he's an independent contractor, he'll need to pay self-employment tax,
which covers Social Security and Medicare taxes. This is reported on a Schedule C
Estimated Tax Payments: If his income is high enough, he may need to make quarterly estimated tax
payments to avoid penalties. However, given the amount you mentioned, this might
not be necessary.
TurboTax can guide you through this process with ease and will include the necessary forms needed.
Finally, from your question , it does not appear to be a robust business and would not need to file as separate business
Good luck to you!
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