Tax Year Prior to 2020: Do I have to report income under $600??

[anabanana208]

I got into Real Estate in 2019, but didn't make a sale. How do I report this in Turbo Tax?

[ThomasM125]

If you were actively trying to sell real estate, you can deduct your expenses in the "Self Employment" section of TurboTax. You will find this in the "Income and Expenses" menu bar, in the federal taxes section of TurboTax.

[KSc4]

When I report income under $600 in the less common income section, it reduces the amount of my federal refund and increases my amount due to the state. My understanding was that you don't have to pay taxes on income under $600?

[JohnW222]

@KSc4

You may be misinterpreting some related information.

Form 1099-MISC is required to be issued to independent contractors or the self-employed who have been paid $600 or more.

If you were paid less than $600 for your services – an amount that doesn’t trigger a 1099-MISC – you’re still responsible for reporting the income.  It’s included in taxable income, whether a 1099-MISC was issued or not.

[Opus 17]

---

@KSc4 wrote:

When I report income under $600 in the less common income section, it reduces the amount of my federal refund and increases my amount due to the state. My understanding was that you don't have to pay taxes on income under $600?

---

If you file a tax return, you are required to report all your income.  No exceptions.  (Whether you will get caught if you don't is a gamble only you can decide to take.)

In some cases, your overall income might be low enough that you aren't required to file, but that is a different discussion. 

[Jossa]

@JohnW222 

"If you were paid less than $600 for your services – an amount that doesn’t trigger a 1099-MISC – you’re still responsible for reporting the income.  It’s included in taxable income, whether a 1099-MISC was issued or not."

I only made around $250 in 2019 using Doordash (no other job or income bc I was in school). I haven't been issued a 1099-MISC since I made less than $600, so how do I still report the income? I know I am still required to report all income made so how do I do this in Turbotax?

[Opus 17]

If your only income is self-employment and it is less than $400 you do not have to file a tax return.  

[ag1977]

My wife worked as an instructor on and off at a yoga studio last year. The studio is owned by someone else, and she was paid on a per-class basis. She made less than $600 so she didn't receive a W2 or a 1099. How do I report this income?

[JohnW222]

For guidance in entering your yoga instructor income, please see the TurboTax Help article "How do I report income from self-employment?".

[Opus 17]

---

@ag1977 wrote:

My wife worked as an instructor on and off at a yoga studio last year. The studio is owned by someone else, and she was paid on a per-class basis. She made less than $600 so she didn't receive a W2 or a 1099. How do I report this income?

---

Essentially, your wife is self-employed as an independent contractor.  She needs to file a schedule C to report her business income and pay self-employment tax.  That information will then flow to the main form 1040 where it is combined with all your other income and deductions.  She is expected to keep accurate business records and report her income even if she does not get tax paperwork from someone else.

The link provided by the Turbotax expert is a good place to start.  

One other note: If you don't have expenses to subtract against the income, you can report the self-employment income in the online Deluxe version.  If she has expenses to subtract against the income, that would require an upgrade to the Self Employment version which is the most expensive version of Turbotax online.  If using the desktop version installed on your own Mac or PC, any version Deluxe or higher will work (just not Basic). 

[jules155]

I do not know the EIN of the government entity that paid me as a poll worker, the info. is not available online and  the payor did not issue me a 1099-MISC of 1099-NEC.  But I am required to report this income ($330) even thought it is less than $600.  How do I find the EIN for this government entity? 

[ToddL99]

Finding the EIN of the government entity that paid you will be very difficult (impossible?) and is unnecessary. Report this income in the Other reportable income interview of TurboTax. Use "Poll Worker" as the description.

Go to the Other Reportable Income interview, the very last interview in  Income and Expenses  >  Less Common Income  >  Miscellaneous Income ) (see attached screen shot).  

[jules155]

Thank you for this response!  

[ewhite6750]

Then where would that be reported in turbotax?

[KathrynG3]

To report income under $600 in TurboTax, first decide what type of income. Here are the steps for entering two main types of income:

Income from Self-employment:

• If the income is from an intent to earn money, include it in your self-employment income & expenses if you want to deduct expenses. 
  • In the search box, enter schedule c
  • Click the Jump to link
  • Use Other self-employed income as the type of COMMON INCOME for income from 1099-K, cash and Checks. 
    • If the income is from your business, but is for cash prizes, shipping overcharges, repayments or interest from a loan someone owes, you, use LESS COMMON INCOME for Uncommon income.
  • Go through the rest of the interview

Any Other Income:​​​​​​​

• Otherwise, if the income is for some other reason, such as from a hobby, reimbursed expenses, or proceeds from selling personal property, then follow these steps:
  • From the left menu, select Federal. This will automatically open to Wages & Income.
  • Scroll all the way to the end to find Less Common Income and Show More.
  • Scroll down to Miscellaneous Income, 1099-A, 1099-C and select Start.
  • Scroll all the way to the last option, Other reportable income and select Start.
  • Any Other Taxable Income? answer Yes.
  • Enter your details.

@ewhite6750