1099 NEC Question if need to report

[amflood34]

i have regular work and received w2 from my employer (70,000 yr). I do sidework once or twice a month for a friend doing invoices. Payed 300 a month for invoices. He issued me a 1099NEC for the total 3600 he paid me over the 12 months. Do i need to report the 3600? or because it was 300 each payment it is under the 600 threshhold i do not need to report? have got conflicting answers from various sources.

If I do need to report it obviously affects my tax situation greatly (going from refund to owing) any suggestions on how i can reduce this debt.

Thanks!

[PattiF]

Yes, you do need to report the total of $3600 that is on the 1099-NEC. This is considered self-employment income and will be reported on Schedule C. You can reduce the amount of income by claiming any expenses that you had to do the work such as mileage, supplies, a small percentage of your phone expenses, or other items.

To enter Form 1099-NEC as self-employment, under Wages & Income, scroll down to Self-Employment and select Show More and Start.

Please see this TurboTax article for more information about Schedule C.

[WJY0109]

The 1099 NEC you received for $3600.00 represents the total annual income for 12 months. Should they report that income to the IRS, as well they should, you are required by rule to declare the full amount as well.  For whatever reason if the IRS determines you're trying to hide income, their position is not kind. Better to avoid that problem altogether, and report the income. Plus, you get milage write-offs you don't get with a W-2. 

I certainly hope this clears up things a bit to make the best decision for yourself in the future. 

[rjs]

The $600 threshold is the amount for which the payer is required to issue a 1099-NEC. The threshold for you being required to report it is 50 cents. And these thresholds apply to the total for the year, not to the amount of each payment.

You have to report all of your income, no matter how little it is. Even if you did not get a 1099-NEC you would still be required to report the income.