consulting income

Forum|Forum|1 year ago
April 5, 2025
3 replies
29 views

I provide random consulting to companies a few times per year and receive ~ $500 each time. I don't receive 1099 forms for it. But I do have some expenses due to it. How do I declare them in taxes?

DianeW777

Level 15

This may be considered self employment income. Report the income and expenses using the links below if you agree.

You can decide if it is hobby or business income. This IRS link will help you: Business or Hobby?

Key elements:

A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
A business allows you to deduct the costs necessary to obtain the income. The law explains that 'you must be engaged in the activity to produce a profit'. The test under IRS tax law is that you must show a profit three out of every five consecutive years to be considered a business.

Once you decide what type of income this is you can use the links above or the instructions below to see how to report.

Other Miscellaneous Income:

Go to the Wages and Income section of TurboTax
Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Hobby Income and Expense > Enter the income

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user17525025134

Level 2

HOW DO I ENTER 1099-nec EARNING FOR ONE TIME JOB ONLY

xmasbaby0

Level 15

@user17525025134

ALL of your 2024 income goes on the same tax return, including the income reported on the 1099NEC.

If you have self-employment income for which you will pay self-employment tax for Social Security and Medicare, you will need to use online Premium software or any version of the desktop software download so that you can prepare a Schedule C for your business expenses.

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-business-expenses-like-home/L1k6HJY4A_US_en_US?uid=m6jrthmp

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**