ErnieS0
Expert Alumni

Self employed

IRS considers anyone who receives a Form 1099-NEC to have a "business" because they are not an employee and no tax was withheld from your pay.

 

You are either an employee or self-employed (a "business"). It's just the way they describe it.

 

This is a good thing, Self-employed persons are allowed to deduct expenses. Employees cannot. Any expenses you claim will lower your tax bill or increase your refund. So deduct any work -related expenses such as mileage, tools and supplies.,

 

The ultimate guide to tax deductions for the self-employed.

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