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schmupy
New Member

If I had less than $600 income from direct sales jewelry business and did not receive 1099-misc, do I still need to do a Schedule C if there was some income but no profit because of expenses zeroing it all out?

 
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1 Reply
MichaelDC
New Member

If I had less than $600 income from direct sales jewelry business and did not receive 1099-misc, do I still need to do a Schedule C if there was some income but no profit because of expenses zeroing it all out?

According to the IRS, "It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income.

All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040.

Independent contractors must report all income as taxable, even if it is less than $600. Even if the client does not issue a Form 1099-MISC, the income, whatever the amount, is still reportable by the taxpayer.

Fees received for babysitting, housecleaning and lawn cutting are all examples of taxable income, even if each client paid less than $600 for the year. Someone who repairs computers in his or her spare time needs to report all monies earned as self-employment income even if no one person paid more than $600 for repairs."

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