Income

[julie-a]

I worked a combo of w-2 and 1099 income (self-employment) in 2023. I made a decent amount. I have had no income for 2024. Would I be able to spread the self-employment income over the two years? I am not sure how this works with self-employment small business. 

[MythSaraLee]

A same question here.

For example, if I got tens of dollars from eBay, usually what is the starting point to file a 1099? Thanks. 

[LoraineG]

No.  In general, you must claim the income the year you earn it (if you are accrual basis) or when you receive it (cash basis).

You have the obligation to file a return if your net income (your total income minus your qualified business expenses) are $400 or more. 

My advice is to make sure you are accounting for all your expenses.  Typically, the first year of a business (as self-employed) won't be generating as much income and you will have some expenses you had to incur to get the business going.  Look here for some tax deductions you may be entitled to:  https://turbotax.intuit.com/tax-tips/self-employment-taxes/top-tax-write-offs-for-the-self-employed/...

Also, more about self-employment here:  https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center#:....

[LoraineG]

You should be receiving a 1099 if your gross sales were $600 or more, however, places like eBay, will issue one, no matter what. Same rules described above apply. @MythSaraLee 

[MythSaraLee]

Thank you so much, LoraineG.

If my net income should be lower than $600, I have direct contributions to local church and Red Cross through the 1099 income, where could I input the expenses for tools and charity contributions? 

Where can I find out the background data table? I was using that data table in another state. Now I am in NY. But I can not find out the table any more.

[MythSaraLee]

Thanks.

So we know that we can only file 1099 incomes for one year. We can not combine those for 2 years.