MarilynG
Expert Alumni

Get your taxes done using TurboTax

The IRS has copies of your 1099-Misc forms.  If you do decide to file a return, you should include them.

If the income on the 1099-Misc is reported in Box 7, 'Nonemployee Compensation' it appears you were a contract employee and would report the income as self-employment income.  You could be assessed Self Employment Tax (same as Social Security taken out of W-2 wages) which would go into your social security account.

When entering the 1099-Misc in TurboTax you are given the option to choose 'this work is unrelated to my regular job' and 'there was no intent to earn a profit'; however, the income would still be taxed as 'other income' and added to your W-2 wages, and you may still owe both Federal and State tax.

If you report it as self-employment income, there are many expenses you can claim related to this income that you may want to consider.  You can have a negative amount of self-employment income if your expenses exceed your income,  or you could have $0 income if your expenses equal your income.

Click the link for some good tips for self-employment you may find helpful.

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