If your total amount is under $400, you do not need to report this as business income and pay self employment taxes (i.e the $46 is your total of business income, not just one client and you have other clients that would bring the total over $400). You can enter this as miscellaneous income.
To enter this miscellaneous income, click on Federal Taxes (on the top menu bar) and then Wages and Income. When the page opens, click "Jump to full list” if it is not displaying the full list of income items. Scroll down to the very last item, Less Common Income and click “Show More” to expand the list. Select "Miscellaneous Income, 1099-A, 1099-C". See attached screenshots
On the page that opens, again choose the very last item, "Other reportable income”. (There is another “other” category that is the first choice - do not use that one). Reply that you did receive this type of other taxable income, then enter a description and the amount. This will put the income on Line 21 of your 1040, as required by the IRS. You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.
If you have multiple clients and your total business income is over $400, then you will need to create a Schedule C and add all of your income together. Note that in order to enter expenses you would need to upgrade to TurboTax Self Employed.
You can enter your self-employed income/expenses for Schedule C without a 1099 by following the instructions below -
- Log into your account and click Take Me To My Return (you must click this before searching if you are not already in your account)
- Type “Schedule C" in the search box, top right of your screen, then click the magnifying glass
- Click the "jump to schedule c" ink in the search results.
- You will arrive at the Your Business Summary page where you can add a business
- Follow the onscreen instructions to enter your business income and expenses
