Do I have to declare a $642,00 1099-MISC

[bafionis]

My wife is yoga instructor and received a 1099-MISC for $642,00.
We file our taxes together. Do I have to include this in our taxes since it is less than $1000,00?

[VolvoGirl · Accepted solution]

Yes since it's over $400.  You must report all you income no matter how small.  Even $1 of bank interest you don't get a 1099Int for.  The IRS gets copies of all the W2s and 1099s and will be expecting to see it on your return.  You owe Self Employment tax on anything over $400.