Hello, I’m a retired social worker and I often get referrals from former clients to assist their friends/relatives. They pay by Zelle, PayPal and cash app, I don’t have a registered business, what do I need to do regarding these tax changes?
You would need to claim the income on your tax return
There are 2 ways to report the income.
- If it is a hobby then the income is reported on schedule 1 for the full amount of the 1099 no expenses allowed to be taken
- If it is a business then it would be reported on a schedule C (self-employed income). You would report the 1099 as income and then deduct the expenses you have against making that income.
You don't need a register business to report this income you would just be considered self employed and use your name as the business name
Here are a few helpful links
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