Income

Forum|Forum|1 year ago
September 25, 2024
2 replies
38 views

I worked a combo of w-2 and 1099 income (self-employment) in 2023. I made a decent amount. I have had no income for 2024. Would I be able to spread the self-employment income over the two years? I am not sure how this works with self-employment small business.

MythSaraLee

Level 5

A same question here.

For example, if I got tens of dollars from eBay, usually what is the starting point to file a 1099? Thanks.

LoraineG

Employee Tax Expert

You should be receiving a 1099 if your gross sales were $600 or more, however, places like eBay, will issue one, no matter what. Same rules described above apply. @MythSaraLee

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MythSaraLee

Level 5

Thank you so much, LoraineG.

If my net income should be lower than $600, I have direct contributions to local church and Red Cross through the 1099 income, where could I input the expenses for tools and charity contributions?

Where can I find out the background data table? I was using that data table in another state. Now I am in NY. But I can not find out the table any more.

LoraineG

Employee Tax Expert

No. In general, you must claim the income the year you earn it (if you are accrual basis) or when you receive it (cash basis).

You have the obligation to file a return if your net income (your total income minus your qualified business expenses) are $400 or more.

My advice is to make sure you are accounting for all your expenses. Typically, the first year of a business (as self-employed) won't be generating as much income and you will have some expenses you had to incur to get the business going. Look here for some tax deductions you may be entitled to: https://turbotax.intuit.com/tax-tips/self-employment-taxes/top-tax-write-offs-for-the-self-employed/L7xdDG7JL

Also, more about self-employment here: https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center#:~:text=You%20have%20to%20file%20an,and%201040%2DSR%20instructions%20PDF.

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