Do I file as sole proprietor or freelance? Also, how can I claim expenses since I WFH?

[soccerguy25]

I have recently begun transitioning into self-employment late this year. I live/work in California and I have worked full-time at a company all year long, but around November I began freelancing and the process of completing my sole proprietorship. I only just got confirmation that my sole proprietorship has been approved this week (January 2025). Should I just file a 1099 or go the extra steps and file as a sole proprietorship for 2024 taxes on my extra income? Also, am I able to claim expenses for all the WFH I've done this year (i.e. rent, internet)?

[Bsch4477]

Sole proprietor and freelancer are the same in terms of taxation. You would report on Schedule C your self employment income for 2024 as well as expenses. Any annual expense would be prorated recognizing your 2 months as self employed. 

[VolvoGirl]

I guess WFH is work from home?   What is your sole proprietor set up as?  What confirmation did you get?  Sole Proprietor is usually the same as freelance or self employment.   Is your Sole Proprietor a Single Member LLC?   If it is a SMLLC, did you elect  to be a S corp? If it isn’t an S Corp it is a disregarded entity and you file it as self employment on Schedule C in your personal tax return.  

Yes you have to report all your income even if you don’t get a 1099NEC.  To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Premium  or any Desktop program but the Desktop Home & Business version will have the most help.