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New Member
posted Mar 18, 2025 2:08:04 PM

If I received a 1099-NEC for $400, do i need to file a schedule C (Long tax form)? I am a college student and only reported $2,000 in total income in 2024.

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3 Replies
Expert Alumni
Mar 18, 2025 2:11:50 PM

If this is all your income for 2024, you are not required to file a tax return,

 

If your income is below the limits indicated in this TurboTax Help article, you aren't required to file a tax return.

Level 15
Mar 18, 2025 2:16:31 PM

  • If your self employment income is $400 you have to file SchC and pay self employment tax unless you can claim the income was a one off venture and you don’t have a business. If you do report that as a business and have even one dollar in expenses, there would be no self employment tax. 

Expert Alumni
Mar 19, 2025 4:18:13 PM

If it was self-employment, you are starting a business and trying to make a living, then it is reportable business income. If it was a one off and you happened to make some money, it is not self-employment and you are below the threshold.

 

 Let's take a look at  Earning side income: Is it a hobby or a business? which lists 9 factors after stating that a hobby is for recreation, not for profit:

  • Whether the activity is carried out in a businesslike manner and the taxpayer maintains complete and accurate books and records.
  • Whether the time and effort the taxpayer puts into the activity show they intend to make it profitable.
  • Whether they depend on income from the activity for their livelihood.
  • Whether any losses are due to circumstances beyond the taxpayer's control or are normal for the startup phase of their type of business.
  • Whether they change methods of operation to improve profitability.
  • Whether the taxpayer and their advisors have the knowledge needed to carry out the activity as a successful business.
  • Whether the taxpayer was successful in making a profit in similar activities in the past.
  • Whether the activity makes a profit in some years and how much profit it makes.
  • Whether the taxpayers can expect to make a future profit from the appreciation of the assets used in the activity.