If we are married, filing jointly, retired couple and my husband did a side hustle for a friend who paid him $2411.25. do we file a 1099 misc?

[psmith321-421don]

My husband worked a side hustle for a friend--4-hours a day, and a friend paid him the money after the job was completed.

[DMarkM1 · Accepted solution]

No, you don't need to file a 1099-Misc.  The person who paid your husband likely should have filed a form 1099-NEC (non- employee compensation) and provided a copy of that form to your husband to use to complete his/your tax return.  Your husband performed a service, was paid for that service, but was not an employee; so that income is considered self-employed income.  You will enter that income in the federal "Wages & Income" section using the "Self-employment" topic.

There you will have the opportunity to also enter/deduct any expenses he may have had in earning that income.          

[psmith321-421don]

Our friend didn't give us a 1099; the friend said he put it under as expenses paid for general labor (his accountant did). So where do I put this? Do I place it as an extra income. My husband only did this job once and done.

[VolvoGirl]

That is self employment income to your husband.  It goes on Schedule C.   Just enter it as Other self employment income or as Cash or General income. You don't need to get a 1099MISC, 1099NEC or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C. 

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to Premium version. Or use any of the Desktop CD/Download programs.

How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

[DianeW777]

Yes, you report the income for services performed with or without a tax reporting document.  You can decide if it is a hobby or a self employment activity.

This IRS link will help you: Business or Hobby?

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.
   • How do I report income from self-employment?

If you decide it is a hobby you can report your hobby income using the steps below.

Other Miscellaneous Income:

1. Go to the Wages and Income  section of TurboTax
2. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
3. Select Hobby Income and Expense > Enter the income

                                             

@psmith321-421don