Hello. I work for Rev.com as a freelance video captioner. They pay us through PayPal, so we do not receive tax forms. Do I need to fill out a 1099-NEC or just a 1099-K?

[kms12340]

I have not received any tax forms from PayPal either since I didn't meet the criteria to get one.

[ColeenD3 · Accepted solution]

You do not fill out any forms unless you, yourself, pay someone who works in your business. If you did not receive a reporting form, you can still report your income on Schedule C. Enter it as Other Self-Employed Income.

[kms12340]

Got it. Thank you!

Also, what do I put down as the type of income?

[ColeenD3]

The second option on the screenshot says it includes, cash, 1099-K and checks. You can say "cash".

[VolvoGirl]

I would just enter it as Other self employment income or as Cash or General income.  You don't need to get a 1099NEC or 1099Misc or 1099K.  Even if you did you can enter all your income as Cash.  Only the total goes to schedule C.

How to enter income from Self Employment

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

Sounds like you might be new to self employment?

You will need to keep good records.  You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small and if you don't get the 1099NEC.

You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc or 1099NEC it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 15.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 14 which flows to 1040 line 8a.  Turbo Tax automatically calculates the SE Tax and Adjustment.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

[kms12340]

This is all great info, thank you!

I've just finished entering in all of my info for the other self employed income, tax breaks, etc.

Now, it is asking me to enter in the Payer's EIN for 1099-NEC. It will not let me enter anything else.  I do not have an EIN. What do I put down?

[AliciaP1]

You should not be using a 1099-NEC to enter your income.  To delete the 1099-NEC entry you can follow these steps:

1. Within your tax return click Wages & Income at the top of the page
2. Click Edit/Add net to 1099-NEC
3. Use the trash can to delete the 1099-NEC, answering Yes to be sure to delete

Now you can enter the self-employed income without tying it to a form. Follow these steps to enter:

1. Open or continue your return in TurboTax
2. Search for Schedule C and select the Jump to link at the top of the search results
3. Answer Yes on the Did you have any self-employment income or expenses? screen
   • If you land on the Your 2021 self-employed work summary page, select Review next to the work you're adding income for
4. Answer the questions on the following screens until you arrive at Let's enter the income for your work
5. Select Other self-employed income and Continue
6. On the next page you can enter any cash, personal checks, credit card payments, or cryptocurrency (Form 1099-K) related to your self-employment.

[kms12340]

I had already deleted the 1099-NEC form before I had continued working on "other self-employed income" so I'm not sure why it is re-directing me to it. To be clear, I made a little over $3,000 from Rev and it is my main source of income at the moment. Does this affect anything?

[ThomasM125]

The amount of your income would not affect anything. You can see if there is a form 1099-NEC in your program and delete it if so. 

A simple way to delete forms in TurboTax online is to use the Tax Tools menu option, which is on your left menu bar when you are working in your program. Then, choose Tools and then Delete a form.

If you are working in the download TurboTax program, use the Forms Mode on your menu bar to bring up the form you want to delete, then choose the Delete Form option at the bottom of the form.

[kms12340]

Thank you!