Taxwise it is not difficult. When you tell TurboTax that you have a 1099-misc to report, it will ask questions to be able to fill out Schedule-C --- your gross income ( amount shown on 1099 -misc box 7 -- Non-Employee Compensation ) and then you get a chance include all the expenses associated with this income stream ( such as mileage , etc. ). Note that you will pay two different types of taxes (a) federal & state income tax on net income ( after expenses ) and (b) Self-Employment Taxes ( called SECA and equivalent to the total FICA taxes , 15.3 % of approx 92% of net income). There is also an adjustment of 50% of the of the SECA to your gross income i.e. your net misc income is reduced by 50% of the SECA tax,
TurboTax will do all the work for you once you enter the 1099-misc, but you should be aware of (a) the SECA and the chance to deduct expenses associated with the income and (b) that you will have to make quarterly estimated payments for federal ( including the SECA ) and State taxes.
Hope this answers your query
