I made $255 in 2021 as a New York state poll worker but I did not receive a W-2 form(under $600 threshold). How can I enter this income without a W-2? Self-employed?

[jhirsh20]

This is a two part question. The first question is clarification and understanding of the section 218 and how it applies then the second question involves more specific situation: 

1.) Previous posts that are most relevant and have best answer:

https://ttlc.intuit.com/community/taxes/discussion/poll-worker-election-official-in-ohio-where-is-th... 

https://ttlc.intuit.com/community/taxes/discussion/i-made-only-480-in-2020-working-for-the-county-re...

Similar to the above If you're in the state of Ohio, you are excluded from paying tax, according to https://www.ssa.gov/slge/election_workers_chart.htm?tl=2 : "Election worker services in Massachusetts, Nevada and Ohio are not covered under a Section 218 Agreement. Election workers and election officials in these three States paid less than the threshold amount in a calendar year are excluded from FICA taxes due to the mandatory Social Security and Medicare provision, which excludes from coverage those election workers, and election officials who earn less than the threshold amount." Is this statement correct? Yes or No? 

Therefore, if I am in the state of Ohio, Ohio poll workers are not covered by a section 218 agreement, and if my pay was below the federal threshold (1800) for FICA withholding and below the threshold (600) for reporting on a W2, I would have to report this as self-employment taxes. Is this statement correct? Yes or No? 

2.) Specific Question: 

My current situation is that I made $255 in 2021 as a New York state poll worker but I did not receive a W-2 form(under $600 threshold). According to the social security website here, https://www.ssa.gov/slge/election_workers_chart.htm?tl=0%2C2  , because I am an Election worker that is paid less than $1,800 in a calendar year beginning January 1, 2017 and going forward, I am excluded from FICA taxes. So what is the exact step by step process to do this properly using the TurboTax Software? 

[DianeW777 · Accepted solution]

The income is below the threshold when social security and medicare taxes would apply.  There is no concern on your part for paying these taxes on the income you received as a poll worker. Once self employment income reaches $400 or more then you must decide if you are performing services as a business.  You can begin to explore this for the future but it is not necessary for 2021.

Any income received for services or goods is taxable.  You have to decide if it's a hobby or a business for tax purposes. Review this page from IRS:

• Business or Hobby?

Key elements:

1. A hobby requires you to report the income you received and under the current tax law, Tax Cuts and Jobs Act (TCJA), no expenses are allowed to be used to reduce the money collected even if you itemize deductions.
2. A business allows you to deduct the costs necessary to obtain the income.  The law explains that 'you must be engaged in the activity to produce a profit'.  The test under IRS is that you must show a profit three out of every five consecutive year.

For the reason discussed above you can simply add the income using the steps below which will populate on your tax return as 'other income'.

Please follow the instructions below to report Other Income:

1. Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
2. Go to the last selection, Miscellaneous Income and click Start
3. Go to the last option, Other reportable income and click Start
4. When it asks, "Any other reportable income?" > yes and then type in a description and the amount to report it on your tax return.
5. TurboTax Online and TurboTax CD/Download will use the same procedure.