My tax return is saying self employed. I am not self employed

You may be self-employed if you have a side job where you don't get a W-2..

 

The key to determining if you’re self-employed is to assess whether you're in business for yourself or are the owner of your own business.

 

This includes any part-time businesses or private “side jobs” where you’re performing services in addition to a regular job or business.

 

You are also self-employed if you’re an individual who:

• is the sole proprietor of an unincorporated business
• works as an independent contractor, consultant or freelancer
• is a member of a business partnership
• owns or is part of a limited liability company (LLC)
• earns income through investments
• earns income through rental property

You may not think of yourself as running a business, but you’re considered self-employed if you engage in business-like activities.

 

Business activities include any activity where you:

• intend to make a profit (even if you operate at a loss)
• have regular transactions or production of income
• make ongoing efforts to sustain, grow, or further the interests of your business

When you’re self-employed, you’ll receive a 1099-NEC, 1099-MISC or a 1099-K from the person or business that paid you.

 

But even if you don’t receive a 1099-NEC, 1099-MISC or a 1099-K, you’re still responsible for reporting all your income and expenses from self-employment on your tax return.

 

Related Information:

• Am I an employee or an independent contractor?
• Does a 1099-NEC or 1099-MISC mean I'm self-employed?
• What's different now that I'm self-employed in 2020?
• What is a sole proprietorship?
• Where do I enter a 1099-MISC?