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.
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.
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.
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
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.