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Can you get a refund by only filing a 1099 NEC? Also claiming the EIC and CTC.

 
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2 Replies
MinhT1
Expert Alumni

Can you get a refund by only filing a 1099 NEC? Also claiming the EIC and CTC.

It depends.

 

By filing a form 1099-NEC (which reports self-employment income), you will owe income tax (as there is rarely tax withheld on a form 1099-NEC) AND self-employment tax.

 

If you are eligible for the EIC and the CTC (child tax credit), you may get a refund.

 

These two credits are refundable. If these credits are larger than your tax due (income tax + self-emplyment tax), then you will get a refund. If they are smaller than your tax due, you will owe taxes.

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Hal_Al
Level 15

Can you get a refund by only filing a 1099 NEC? Also claiming the EIC and CTC.

Simple answer: Yes.  1099-NEC income is earned income and that qualifies you for the child based EIC (for 2021 only, the Additional CTC is not earned income based, so you get that regardless of income source).

 

But, as the other reply said, it depends on the math.  "Self Employment Tax" (SET)  is in addition to 

income tax (if any, probably not).  SET is how the self employed pay their Social Security and Medicare ("FICA") tax. 

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