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Get your taxes done using TurboTax
Yes, you need to file. The IRS considers you self-employed (Independent Contractor) and requires you to file a Schedule C, Profit of Loss From Business, for any amount $400 or over. You will not be able to use the Free Edition and will be asked to upgrade.
The IRS considers you self-employed and have your own business if:
- You earn money as a contractor, consultant, freelancer, or other independent worker.
- You income is reported on 1099-MISC (Box 7), 1099-K (Box 1a), or you receive cash, check or credit card sales transactions, instead of a W-2.
When you have self-employment income, the IRS:
- Requires you to complete Schedule C, Profit or Loss From Business.
- You can deduct expenses related to the income.
- Requires you to pay self-employment (social security and Medicare).
If your self-employment income was from cash or personal checks or credit card payments:
1. Type “Sch C” in the Search box.
2. Click on “Jump to” link.
3. This will take you to where you can enter any cash, personal checks or credit card payments (Form 1099-K) related to your self-employment.
4. You may be asked some general questions about your business.
5. After you answer them, you’ll be taken to the Your XXX Business screen where you can enter this income as Additional Income under Business Income.
If you received a 1099-MISC for your self-employed income:
1. Type “1099-misc” in the Search box.
2. Click on “Jump to” link.
3. This will take you directly to the section where you can enter your 1099-MISC.
4. You’ll also be able to enter any cash, personal checks or credit card payments (Form 1099-K) related to your self-employment.
Related Information:
- What's the difference between self-employment income and other income?
- Where do I enter a 1099-MISC?
- Why am I paying self-employment tax?