You'll need to sign in or create an account to connect with an expert.
Report your income as an independent contractor on Schedule C.
You are self-employed. You enter your self-employment income as business income in TurboTax. It will be shown on Schedule C in your tax return.
The tag below your question indicates that you are using TurboTax Live Basic. In Basic Online you cannot report business income without a 1099-NEC, and you cannot report any business expenses. You will have to upgrade to Premium, or use any version of the CD/Download TurboTax software.
If it's true that you are using TurboTax Live, you should address your questions to a TurboTax Live tax expert. You are paying extra for that service. See the following FAQ for instructions to contact a TurboTax Live tax expert.
How do I connect with a tax expert in TurboTax Live?
There are two possibilities.
You may be an independent contractor. That depends on the relationship between you and the person paying you -- who controls the work hours and conditions, who sets the rules, and so on.
If you are legitimately an independent contract, then you file your return as a self-employed person. You will pay income tax plus 15% self-employment tax on your net income. (You pay 15% instead of 7.65% social security and medicare you would pay as an employee.) You must make estimated payments at least 4 times a year or you can be assessed a penalty even if you pay in full when you file your return, so plan on setting aside at least 25% of your pay, possibly more.
If, based on your working conditions, you are an employee, you are entitled to file as an employee and pay less tax (7.65% social security and medicare instead of 15%) but this will blow the whistle on your under the table arrangement. If you want to keep the arrangement, you must continue to file as self-employed even if that is not the case. Your family member is breaking the law and is denying you (possibly) the right to unemployment insurance, the right to workers compensation if you are injured, and possibly other benefits under state and federal law. (It is, of course, possible that you are legitimately an independent contractor and your relative is doing nothing wrong. The depends on the exact nature of your work relationship and duties.)
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
paytheman
Returning Member
usera22adca2
New Member
hedderfedder73
New Member
roalddahl14
Level 3
taddeusz01
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.