Do I HAVE to have a 1099-MISC to report my contract employee income from 2016 if I've kept track of every check I received and report it as additional income?

[bwa · Accepted solution]

If this is business income you don't need a Form 1099. Self-employment income should be based on your records. The Forms 1099 are primarily for the IRS, and only a reminder to you.

Such payments are reported as business income. Once entered,  TurboTax will automatically compute a Schedule C (Net Profit from Business) and, if appropriate, a Schedule SE for self-employment tax. Note that the program has two categories when entering business income:

1.       1099-Misc Income

2.       General Income

If you don’t have a Form 1099-Misc, you would enter the income under the second category.

[DexterS]

It's generally best to wait for the 1099.  This is the document that goes to the IRS.  If there's a difference between what the payer reports and what you report straightening it out can be a mess.

Payers will report the gross amount paid to you, including reimbursed expenses.  You should report this gross amount, but deduct the reimbursed expenses as an expense on your Schedule C to get to the correct net taxable income.