Why did you get a 1099K? That is usually for self employment income. Was that the only income you had? Which Desktop program did you buy?
You can enter your income as Cash or General income. You don't need to get a 1099MISC, 1099NEC or 1099K. Even if you did you can enter your total income as General Income. Only the total goes to schedule C. You should be entering the income from your own records.
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. The SE tax is to pay both the Social Security and Medicare tax that wasn't taken out like on a W2 job.
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare (FICA). So you get social security credit for it when you retire. It is in addition to any regular income tax you owe on it.
To fill out schedule C in the Desktop program Deluxe or Premier…..
Go to Federal tab
Click on Wages and Income - Continue
Pick - I'll choose what I work on
Then scroll way down to Business Items
Business Income and Expenses - Click the Start or Update button
Or for the Home & Business Desktop program…..
Go to Business tab-Continue. Then pick I'll choose what I work on
First item, Business Income and Expenses click Start or Update
Profit or Loss from Business, click Start or Update.
You use your own name, address and ssn or business name and EIN if you have one. You should say you use the Cash Accounting Method and all income is at risk.
