JotikaT2
Employee Tax Expert

Business & farm

If you are getting paid as a contractor, you would report the income as being a part of your own self-employed business if your intent is to make a profit.


If this is a side hobby, you would still report the income but it would not be considered a self-employed business.

 

Hobby versus Business comparison

 

If you are reporting this income as self-employment income (meaning you are running a business with the intent to make a profit), you will do the following in the Federal interview section: 

  1. Select Income & Expenses 
  2. Select Self-employment income and expenses 
  3. Proceed through the screens to enter your information 
  4. When you see the following for income, make sure to select Other self-employed income. Includes 1099-K, cash, and checks. 

If it is not from self-employment, you would enter the information as follows: 

  1. Select Income & Expenses 
  2. Go to the  All Income section and select Less Common Income 
  3. Select Miscellaneous Income

You will then select Other reportable income to enter your income.  Be sure to mark that it was not earned as part of business.

 

 

 

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