I received a one time consulting fee of $300 in 2017. Do I need a W2? How do I report it?

Intuit Alumni

Jun 1, 2019 8:57:32 AM

W-2s are used for employees of a Company. If you are an independent contractor, not an employee, you do not need a W-2. If the amount was over $600, the Company paying you the consulting fee would have had to issue you a 1099-MISC.

If you have net self-employment income of $400 or more you have to file a schedule C in your personal 1040 return for self-employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.

So if this is your only self-employment income (under $400), you can just include in on line 21 of your 1040. Please see below for how to enter this in TurboTax.

Please follow the instructions below to report your cash (check) income on line 21:

Click Federal Taxes -> Wages & Income and scroll down to Less Common Income
Go to the last selection, Miscellaneous Income and click Start
Go to the last option, Other reportable income and click Start
When it asks, "Any other reportable income?" say yes and then type in a description and the amount to report it on your tax return.

Please note the additional information about self-employment income below.

Self-employment income

Money you earn as a contractor, consultant, freelancer, or other independent worker.
It's reported on 1099-MISC (Box 7), 1099-K (Box 1a), or as cash, check or credit card sales transactions.
Requires you to complete Schedule C.
You can deduct expense related to the income.
Requires you to pay self-employment tax.

Other income

It's money you received from something like a prize, award, lawsuit settlement, etc.
It's most often on a 1099-MISC (Box 3).
You report it on Line 21 of Form 1040.

Why sign in to the Community?

I received a one time consulting fee of $300 in 2017. Do I need a W2? How do I report it?