As a street performer receiving cash, which tax form do I use?Its not hobby income.I treat it like a business.Do I qualify as a business?Do I give myself my own 1099MISC?
You enter it as cash self employment income. You don't need a 1099Misc. Are you using the Desktop Home & Business program?
Go to the search box and type in schedule C and it will give you a JUMP TO link go directly to it. Then you might go though a lot of screens asking about your business info You will eventually get to a screen labeled Your Business The second topic is Business Income - click Start or Update Then enter the cash income under General Income - Start
You need to report all your income even if you don't get a 1099Misc. 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 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. You do get to take off the 50% ER portion of the SE tax as an adjustment on Schedule 1 line 27. The SE tax is already included in your tax due or reduced your refund. It is on the Schedule 4 line 57. The SE tax is in addition to your regular income tax on the net profit.