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What's the difference between self-employment income and other income?

SOLVEDby TurboTax1249Updated April 17, 2023

There are some major differences between them.

Self-employment income:

  • Money you earn as a contractor, consultant, freelancer, or other independent worker
  • It's reported on 1099-NEC (Box 1), 1099-K (Box 1a), or as cash, check or credit card sales transactions
  • Requires you to complete Schedule C
  • You can deduct expense related to the income
  • Requires you to pay self-employment tax

Other income:

  • 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 8 of Schedule 1 of the Form 1040

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