Can I claim my $1,000 income on my 1099-NEC form as a Hobby income? Its money I get from commissions but I don't receive it all the time.

[tmhaumea]

I dont have a State GE tax number to be self employed.

[Vanessa A]

You are considered self-employed if you are performing a service or selling an item with the intention of making money.  Whether or not you have a state GE tax number does not change if you are self-employed, it only changes whether you are in compliance with your state rules or not.

If this is income from commission, then is this as an employee or something else?  Do you also get a W-2 from the same payor?  

If you do NOT get a W-2 from the same payor or it is not a manufacturer incentive, then this is self-employment income and you would need to report it as such.

If it is from a manufacturer or something similar as an incentive, but not your employer, then you would report it as hobby income.  

If it is from your employer, then this needs to be included on your W-2 and should not be on a 1099-NEC. Employers must include ALL payments on your W-2. You should contact your employer for a correction, but if they do not, then you will need to enter your income by selecting the following:

1. Income
2. Show More next to Less Common Income
3. Start next to Misc Income
4. Start next Other income not already reported on a form W-2 or Form 1099
5. Yes to did you receive any other wages
6. Continue through to did you earn any other wages and answer yes
7. Select employee compensation that was not reported on a W-2
8. Hit continue
9. Report your wages and select I received a 1099 for this income use reason code H

Myths About Misclassification