Do I report online design contest winnings as self-employment or miscellaneous income?

[awychers]

I have a full-time graphic design job, but I won a couple online design contests in 2018 totaling $775. I did this on the side. Do I report this as self-employment or miscellaneous income (or something else)? I did not receive any forms for this work as it was for two separate clients and the contest winnings weren't enough to require it.

[Ashby · Accepted solution]

You could report other income for this year, but if you continue and have it year over year, it would be self-employment because it would give rise to a profit motive and expected income.

Other income

• It's money you received from something like a prize, award, lawsuit settlement, etc.
• It's most often on a 1099-MISC (Box 3).
• You report it on Line 21 of Schedule 1 of the Form 1040.