reporting contract labor

pibarra13 — Sat, 27 Mar 2021 19:54:50 GMT

why did my refund go down after adding contract labor ?

Re: reporting contract labor

SweetieJean — Sat, 27 Mar 2021 20:47:50 GMT

Your EIC may have gone down. But the IRS requires that you claim all of your self-employment expenses.

Re: reporting contract labor

JotikaT2 — Sun, 28 Mar 2021 23:10:38 GMT

Assuming the contract labor was reported on a 1099-MISC or 1099-NEC, this would be considered taxable income. As such, you need to pay taxes on that income as most times, income taxes are not withheld on these sources of income.

If that is correct, your income from this income is subject to income taxes and is reported on your income tax return.

Therefore, your overall refund has been updated to ensure you are paying taxes on this income as applicable.

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:

Select Income & Expenses
Select Self-employment income and expenses
Proceed through the screens to enter your information
When you see the following for income, make sure to select Other self-employed income. Includes 1099-K, cash, and checks.
You can also enter your self-employed expenses in this section to ensure you only report taxes on your net income.

Please see the link below for additional guidance on reporting self-employed business activity.

Self employment income and expense guide

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

Select Income & Expenses
Go to the  All Income section and select Less Common Income
Select Miscellaneous Income
You will then select Other reportable income to enter your income.

@pibarra13

[Edited 03/28/2021 | 4:10 PM PST]

topic Re: reporting contract labor in Deductions & credits

reporting contract labor

Re: reporting contract labor

Re: reporting contract labor