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

[ksch2]

Do I need to enter EIN if I made less than $600?  I made a little under 500.  When I tried to file after the checks and balances system prompted me to enter EIN or SSN of the "employer".  Would I still provide that despite the lack of 1099?   I dont want to enter EIN, they will look for 1099 and there will be nothing - as I did not receive it.

When I tried entering my SSN instead of EIN, it rejected it. I filed as self-employed 

Thanks 

[LenaH]

You are able to file a Schedule C without a payer's EIN and not associate it with a 1099. When you are inputting information for your Schedule C, click on the option Other self-employed income under Common Income. This includes cash and checks received and income not reported on any particular 1099 form. 

You will only have to enter the type of income (example: cash) and the amount for your Schedule C. 

Please follow these steps in TurboTax to revise your Schedule C income field:

1. Open your return.
2. Search schedule c with the magnifying glass tool on the top of the page.
3. Go to the Jump to schedule c link in the search results. 
4. Click Edit next to your self-employment.
5. Use the trash can tool to delete prior entry of income inputted.
6. Click on Add income for this work.
7. Click on the option Other self-employed income under Common Income.
8. Follow the on-screen instructions.

@ksch2

[Smercuris]

HOW do I report this income if I did not receive the 1099 -MISC form?

[Irene2805]

You can enter the income as Miscellaneous Income using these steps.

1. Click on Federal > Wages & Income   
2. In the Less Common Income section , click on the Start/Update box next to Miscellaneous Income, 1099-A, 1099-COn the Miscellaneous Income screen, click on the Start/Revisit box next to Other reportable income. 
3. On the Any Other Taxable Income? screen, click the Yes box.
4. Enter the income on the Other Taxable Income screen, along with a description.  Click Continue. 
5. You will be brought to the Other Miscellaneous Income Summary.  If you have no more miscellaneous income to report, click Done.

[KB2019]

What if I also have unearned income from an early IRA distribution?

[Irene2805]

You should receive a Form 199-R reporting the income from the early IRA distribution.  Unless you meet one of the exceptions, you will have a 10% penalty for early withdrawal from your IRA.  Please see this list of exceptions on the IRS website:  Retirement Topics - Exceptions to Tax on Early Distributions

To enter the 1099-R please follow these steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Retirement Plans and Social Security section and click on the Start/Revisit box next to IRA, 4701(k), Pension Plan Withdrawals (1099-R). 
3. If you've already entered one (or more) 1099-Rs, you will see a screen Your1099-R Entries.  
4. Now you can click on the link Add Another 1099-R. 
5. If you haven't already entered a 1099-R, you will see the screen, Your1099-R. Click Yes and then Continue.
6. Click the I'll type it in myself box.   
7. On the screen, Tell Us Which 1099-R You Have.  Make sure you select the correct form and then click Continue.
8. When you are finished entering the 1099-R information, you will be brought back to the Your 1099-R Entries screen.  Click Continue if you have no more 1099-Rs to enter.

@KB2019

[guerareal77]

How does what you said reconcile with this?  https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

[guerareal77]

@Opus 17  Thank you for your clear answer.  I have W-2 earnings plus a 1099-MISC with a few hundred bucks.  It's been really confusing trying to figure out whether I have to claim the 1099.  I wish the IRS site would be so clear.  https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

[Opus 17]

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@guerareal77 wrote:

@Opus 17  Thank you for your clear answer.  I have W-2 earnings plus a 1099-MISC with a few hundred bucks.  It's been really confusing trying to figure out whether I have to claim the 1099.  I wish the IRS site would be so clear.  https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

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I don't understand what you are asking, the discussion that you posted your add-on message to is already quite confusing.  You may want to post a new discussion topic.

All income is presumed taxable unless you can prove otherwise.  A 1099-MISC means someone paid you for something, the IRS will assume that's taxable income.  Exactly how to report it depends on what kind of income it is, and you didn't provide enough details. 

[ry-guy]

Can expenses be written off if you made less than $600?

[Opus 17]

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@ry-guy wrote:

Can expenses be written off if you made less than $600?

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If your only income is from self-employment, you must file a return if your net income after expenses is more than $400.

If you file a tax return for any reason, you must include all your self-employment income, no matter how small.

If you report self-employment on schedule C, you must report all your income, including cash, even if you did not get 1099s from all your clients or customers.

If you report self-employment on schedule C, you may deduct ordinary and necessary business expenses. 

[ry-guy]

@Opus 17 I report income via W-2 and won’t receive a 1099-MISC this year since the income is ~$500. Just to confirm, I must still report the $500? And I am also able to deduct expenses relating to the $500? Is there a limit in amount of expenses that can be deducted? Thanks.

[Opus 17]

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@ry-guy wrote:

@Opus 17 I report income via W-2 and won’t receive a 1099-MISC this year since the income is ~$500. Just to confirm, I must still report the $500? And I am also able to deduct expenses relating to the $500? Is there a limit in amount of expenses that can be deducted? Thanks.

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Work-related expenses can't be deducted from w-2 earnings for tax years 2018-2025.  Even when they were deductible, there were limitations that prevented most people from getting an actual benefit.

If your only income is from wages, you are not required to file a return unless your total taxable income is more than $12,400.  However, if you file a tax return for any reason, you must report all your income, no matter how small.  

[ry-guy]

To clarify: I receive a W-2 and usually a 1099-MISC but next year I will only receive a W-2 because my nonemployee income will only be $500. Am I still able to claim expenses related to the $500 earned? And if so, can I claim expense(s) that are greater than the amount of $500 earned? Thanks.