Do I need to file a 1099 NEC

I received a 1099 NEC and Im confused on whether I need to file if its less than my standard deduction of for single no dependents and It was my only income for the year. I was also claimed as a dependent by my head of house hold. How would I be affected if I do not file this year?

626

Level 15

Apr 17, 2023 7:06:52 PM

If your 1099-NEC is for more than $400 you must report it to pay self employment tax even though you may not have to pay regular income tax.

Expert Alumni

Apr 17, 2023 7:18:18 PM

The IRS filing requirements are different for business owners. The form 1099-NEC is used with the self employed. Income over $400 requires self-employment tax. You should file a tax return to claim your income and pay any taxes due.

References:

Do I Need to File a Tax Return?
Does a 1099-NEC or 1099-MISC mean I'm self-employed?
Schedule SE (Form 1040)

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Do I need to file a 1099 NEC