What's the difference between self-employment inco...

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What's the difference between self-employment income and other income?

There are some major differences between them.

Self-employment income

  • Money you earn as a contractor, consultant, freelancer, or other independent worker.
  • It's reported on 1099-MISC (Box 7), 1099-K (Box 1a), or as cash, check or credit card sales transactions.
  • Requires you to complete Schedule C.
  • You can deduct expense related to the income.
  • Requires you to pay self-employment tax.

Other income

  • It's money you received from something like a prize, award, lawsuit settlement, etc.
  • It's most often on a 1099-MISC (Box 3).
  • You report it on Line 8 of Schedule 1 of the Form 1040.

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