Solved: Do I have to report income under $600??
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New Member

Do I have to report income under $600??

I got into Real Estate in 2019, but didn't make a sale. How do I report this in Turbo Tax?

Employee Tax Expert

Do I have to report income under $600??

If you were actively trying to sell real estate, you can deduct your expenses in the "Self Employment" section of TurboTax. You will find this in the "Income and Expenses" menu bar, in the federal taxes section of TurboTax.

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Level 2

Do I have to report income under $600??

When I report income under $600 in the less common income section, it reduces the amount of my federal refund and increases my amount due to the state. My understanding was that you don't have to pay taxes on income under $600?

Expert Alumni

Do I have to report income under $600??

@KSc4

You may be misinterpreting some related information.

Form 1099-MISC is required to be issued to independent contractors or the self-employed who have been paid $600 or more.

If you were paid less than $600 for your services – an amount that doesn’t trigger a 1099-MISC – you’re still responsible for reporting the income.  It’s included in taxable income, whether a 1099-MISC was issued or not.

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Level 15

Do I have to report income under $600??


@KSc4 wrote:

When I report income under $600 in the less common income section, it reduces the amount of my federal refund and increases my amount due to the state. My understanding was that you don't have to pay taxes on income under $600?


If you file a tax return, you are required to report all your income.  No exceptions.  (Whether you will get caught if you don't is a gamble only you can decide to take.)

 

In some cases, your overall income might be low enough that you aren't required to file, but that is a different discussion. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Level 1

Do I have to report income under $600??

@JohnW222 

"If you were paid less than $600 for your services – an amount that doesn’t trigger a 1099-MISC – you’re still responsible for reporting the income.  It’s included in taxable income, whether a 1099-MISC was issued or not."

 

I only made around $250 in 2019 using Doordash (no other job or income bc I was in school). I haven't been issued a 1099-MISC since I made less than $600, so how do I still report the income? I know I am still required to report all income made so how do I do this in Turbotax?

Level 15

Do I have to report income under $600??

If your only income is self-employment and it is less than $400 you do not have to file a tax return.  

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Returning Member

Do I have to report income under $600??

My wife worked as an instructor on and off at a yoga studio last year. The studio is owned by someone else, and she was paid on a per-class basis. She made less than $600 so she didn't receive a W2 or a 1099. How do I report this income?

Expert Alumni

Do I have to report income under $600??

For guidance in entering your yoga instructor income, please see the TurboTax Help article "How do I report income from self-employment?".

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Level 15

Do I have to report income under $600??


@ag1977 wrote:

My wife worked as an instructor on and off at a yoga studio last year. The studio is owned by someone else, and she was paid on a per-class basis. She made less than $600 so she didn't receive a W2 or a 1099. How do I report this income?


Essentially, your wife is self-employed as an independent contractor.  She needs to file a schedule C to report her business income and pay self-employment tax.  That information will then flow to the main form 1040 where it is combined with all your other income and deductions.  She is expected to keep accurate business records and report her income even if she does not get tax paperwork from someone else.

 

The link provided by the Turbotax expert is a good place to start.  

 

One other note: If you don't have expenses to subtract against the income, you can report the self-employment income in the online Deluxe version.  If she has expenses to subtract against the income, that would require an upgrade to the Self Employment version which is the most expensive version of Turbotax online.  If using the desktop version installed on your own Mac or PC, any version Deluxe or higher will work (just not Basic). 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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