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withflow
Returning Member

I helped my friends to install flooring. And they paid (around $3000) for these. What kind of form is OK to report this income? 1099-K? I was not a registered contractor.

I was not a licensed (registered) contractor. I just remodelled my home, and some my friends saw my remodelled home and asked to me for their project. So I helped them to install flooring and tile (backsplash). It took several days, so they paid to me.

How can I report these kinds of income?

I'm worried about these income. Because I was/am not a registered (licensed) contractor. (It is not my comercial buisiness.)

   

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WillK
Intuit Alumni

I helped my friends to install flooring. And they paid (around $3000) for these. What kind of form is OK to report this income? 1099-K? I was not a registered contractor.

You would be considered an independent contractor (do not worry about not having a license, the IRS does not care about that). If you received a 1099-MISC, with box 7 checked, you would file a Schedule C to report the income and expenses you had. If you received a 1099-K, you would report that instead. 

Turbo Tax will walk you through how to report the income and expenses using your social security number and make sure you get the information on the correct forms. 

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4 Replies
WillK
Intuit Alumni

I helped my friends to install flooring. And they paid (around $3000) for these. What kind of form is OK to report this income? 1099-K? I was not a registered contractor.

You would be considered an independent contractor (do not worry about not having a license, the IRS does not care about that). If you received a 1099-MISC, with box 7 checked, you would file a Schedule C to report the income and expenses you had. If you received a 1099-K, you would report that instead. 

Turbo Tax will walk you through how to report the income and expenses using your social security number and make sure you get the information on the correct forms. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

I helped my friends to install flooring. And they paid (around $3000) for these. What kind of form is OK to report this income? 1099-K? I was not a registered contractor.

If this is a one-time favor and the taxpayer is not engaged in an going trade or business as a handyman, I would consider this as "other income" and not self-employment.  You report in the other uncommon income section.  You don't pay the additional self-employment tax, but you can't deduct work-related expenses.

For tax purposes, the IRS doesn't care if you have or don't have any kind of state license that might be required.  what the IRS wants to know is, are you engaged in a trade or business.  If so, it is self-employment income.  If not, you are probably safe treating it as "other income" as long as you don't start reporting similar income or doing more jobs for people.
withflow
Returning Member

I helped my friends to install flooring. And they paid (around $3000) for these. What kind of form is OK to report this income? 1099-K? I was not a registered contractor.

I helped and received money for 5 projects, but I didn't received any documents (1099-MISC, 1099-K). What kind of income module is matched to me in TURBOTAX?

I helped my friends to install flooring. And they paid (around $3000) for these. What kind of form is OK to report this income? 1099-K? I was not a registered contractor.

That's starting to sound a lot less casual and a lot more like a self-employed situation.  You need Turbotax self-employed online, indicate you have a self-employment job as a handyman or contractor.  You won 't have a 1099 but you can also add "other income not on a 1099".  Schedule C reports your self-employment income and business expenses, the net income (profit) flows to schedule SE to compute self-employment tax, and it also flows to the form 1040 where it is combined with your other income, deductions and credits.
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