I'm a W-2 employee but also building a new small business to help bring in more income due to
the covid days. I know the extra work is 1099 so how do I show the 1099 income along with
my W-2 on my tax return?
That would be self-employment income. Assuming your business is a sole proprietorship or single member LLC, all business income and expenses gets reported on SCH C as a physical part of your personal 1040 tax return. Chances are that being self-employed your customers will ***NOT*** issue you ***ANY*** type of tax reporting document, as they may not be required to. So its up to you to keep detailed business records of all business income and all business expenses - every single penny. Then the IRS expects you to use those records to complete the SCH C on your personal 1040 tax return.
Also I make annual income from a brokerage account I have. Can I add that to my return as 1099 income?
No. your investment income as absolutely nothing what-so-ever in any way, shape, form or fashion to do with any other type of income you receive. Any and all investment income you receive is reported in the investments section of your tax return.
I highly recommend you seek professional help or at least talk to others in your area who are self-employed to educate yourself not only on the tax aspects of being self-employed, but the other legal aspects of that too; especially if your state taxes personal income. If you sell product you will probably also be dealing with sales tax, which has nothing to do with income taxes. In some states even services are subject to sales taxes. So get yourself educated on this *first* by seeking information from a professional in your locale, or others who are already self-employed in your local area.
FYI - I have on many occasions seen where folks who did not educate themselves first, ending up going bust after their first year of business because of all the fines, penalties, late fees and back taxes they were assessed for not doing things right in that first year as required by law (both federal, state, and local laws). I have not yet seen any authority that was forgiving based on the excuse of "I didn't know".
