Yes, you need to file. The IRS considers you self-employed (Independent Contractor) and requires you to file a Schedule C, Profit of Loss From Business, for any amount $400 or over. You will not be able to use the Free Edition and will be asked to upgrade.
The IRS considers you self-employed and have your
own business if:
- You earn money as a contractor,
consultant, freelancer, or other independent worker.
- You income is reported on
1099-MISC (Box 7), 1099-K (Box 1a), or you receive cash, check or credit
card sales transactions, instead of a W-2.
When you have
self-employment income, the IRS:
- Requires you to complete Schedule C, Profit or Loss From
Business.
- You can deduct expenses related to the income.
- Requires you to pay self-employment (social security and
Medicare).
If your
self-employment income
was from cash or personal
checks or credit card payments:
1. Type “Sch C” in
the Search box.
2. Click on “Jump to” link.
3. This will take you to where you can enter any
cash, personal checks or credit card payments (Form 1099-K) related to your
self-employment.
4. You may be asked some general questions about
your business.
5. After you answer them, you’ll be taken
to the Your XXX Business screen where you can enter this
income as Additional Income under Business Income.
If you received
a 1099-MISC for your self-employed income:
1. Type “1099-misc” in
the Search box.
2. Click on “Jump to” link.
3. This will take you directly to the section
where you can enter your 1099-MISC.
4. You’ll also be able to enter any cash,
personal checks or credit card payments (Form 1099-K) related to your
self-employment.
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