Even if you do not get a 1099-MISC form, the IRS says all income is taxable and you have to claim it on your
income tax return.
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:
- Log
on to TurboTax and click on the orange button, Take me to my return.
- Type “Sch C” in
the Search box.
- Click on “Jump to” link.
- 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.
- You may be asked some general questions about
your business.
- 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.
- You
would also access the Business Expenses entry screens on the Your
XXX Business screen.
If you received
a 1099-MISC for your self-employed income:
- Log
on to TurboTax and click on the orange button, Take me to my return.
- Type “1099-misc” in
the Search box.
- Click on “Jump to” link.
- This will take you directly to the section
where you can enter your 1099-MISC.
- You’ll also be able to enter any cash,
personal checks or credit card payments (Form 1099-K) related to your
self-employment.
- You
would access the Business Expenses entry screens on the Your
XXX Business screen.
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