All of the above answers are correct.
Yes, the amount of income you received is taxable on your federal return and on your state return. Whether you get a tax form or not, doesn't matter. Per IRS, all income is taxable unless the IRS code specifically states it's not taxable. A list is available in Publication 525, Taxable and Nontaxable Income.
You're considered self-employed—even if it’s just something you do on the side, like dog walker, drive for Uber, babysit, or blog.
Your taxes are handled differently than when you're an employee of a company.
As a self-employed individual you:
- Will pay self-employment tax (because income tax, Social Security, and Medicare aren’t deducted from your pay)
- Will get a 1099-MISC, 1099-NEC, or 1099-K (unless you only accept cash or personal checks)
- File a Schedule C, Form 1040 (this is how you report business expense or loss of income)
- Can deduct money you spent on work-related expenses (like mileage, home office expenses, and mobile phone use)
- Can estimate the taxes that are due and make quarterly estimated tax payments during the year
If your self-employment income was only from cash, personal checks, credit card payments, or cryptocurrency
- Open or continue your return in TurboTax
- Search for Schedule C and select the Jump to link at the top of the search results
- Answer Yes on the Did you have any self-employment income or expenses? screen
- If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for
- Answer the questions on the following screens until you arrive at Let's enter the income for your work
- Select Other self-employed income and select Continue
- On the next page you can enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment
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