My wife is employed part-time at Company-A with W2. She is NOT self-employed. A friend from another company (Company-B) asked her for some temp help and she did, and it is done and over with. She didn't receive any paychecks or stubs from them, rather they direct-deposited four payments, totaling $940 into her bank account. As if they paid her cash, no taxes taken out. They are not required to issue her any W2 (and TurboTax confirms this in one of help screens if under $2,400).
Question is: Should we report this income as self-employment income or Misc Income in TurboTax? My guess is the latter via:
Federal Taxes > Wages and Income > Less Common Income section > Misc Income > Other income not already reported on a Form W2 or Form 1099 > Other Wages Received=Yes > (skip the next 3) > Any Other Earned Income=Yes > Source of Other Earned Income=Other
Am I on the correct path? TIA
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You are correct since the income was from a one-off job.
they direct-deposited four payments, totaling $940 into her bank account.
Just be aware that since it was more than $600 paid to an individual (and not to a corporation) they may be required to issue her a 1099-NEC. They have until Jan 31st to get it in the mail which means you could receive it as late as the first week of Feb.
You are correct since the income was from a one-off job.
they direct-deposited four payments, totaling $940 into her bank account.
Just be aware that since it was more than $600 paid to an individual (and not to a corporation) they may be required to issue her a 1099-NEC. They have until Jan 31st to get it in the mail which means you could receive it as late as the first week of Feb.
Thank you both! I will post back in a couple of weeks about the 1099-NEC
Feb Update: Received 1099-NEC. Thank you @Carl .
P.S. I keep marking your answer as "best answer" but it won't get saved for some odd reason!
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