This question is likely not regarding Form 1099-R income--it is asking you if anyone worked for you.
- If anyone was paid more than $600 by you, then you would have needed to send them Form 1099-NEC, the new form that replaces Form 1099-MISC for nonemployee compensation. (Form 1099-R is for retirement distributions.)
- When someone agrees to work for you, get them to fill out Form W-9, for your records. Use this information to issue Form 1099-NEC and stay in compliance with the IRS.
- Form W-9 does not get turned in anywhere. It is for your use to complete and send Form 1099-NEC to each person earning more than $600.
- This establishes that you are not their employer and therefore these workers are responsible to pay their own taxes. See: Am I considered self-employed?
You may have received Forms 1099-NEC for your work done, yourself, too, since you are self-employed. All income received for jobs should be reported. All expenses you have should be included to offset the income.
The method of accounting is commonly cash basis, when you recognize income and expenses by when the cash hits your bank account.
- The other main option is accrual basis, when you secure the job or order the goods, but the money has not yet been paid/received.
Look for the blue Learn more links when questions are asked. These open short explanations for what is being asked so you know better how to answer.
For more information, see: Self-employed and small business resources for your 2020 taxes.
