Tutoring 1099-misc

Forum|Forum|2 years ago
April 9, 2023
1 reply
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Posting fur my daughter. Hello I am a college student and do tutoring through a local company. They sent me a 1099-misc form for the $633 they paid me in 2022. I am trying to use TurboTax but it seems like the 1099 makes it seem like I have a business? Is that correct? The company that hired me never explained this to me.

KrisD15

Yes, if you were issued a 1099-NEC.

When you work as an employee, your employer withholds and pays your FICA (Social Security) tax.

When you are paid as a contractor, you need to file as a Self-Employed Taxpayer (Schedule C) and pay that tax through your tax return.

You are also allowed to deduct any expenses you paid relating to the income.

Since it is 1099-MISC, you COULD try to report it as taxable income but not Self-Employment if you considered the tutoring a hobby but it sounds like you did it to earn money, not as a "fun" thing to do.

You will need to upgrade to report Self-Employment income in TurboTax. You might look into using IRS Free File if that works out better.

IRS FREE FILE

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monkatomAuthor

Thanks for the info. It would have been nice if the company explained that. Seems like a lot of extra work filling out business forms schedules etc for such a small amount of income.

AliciaP1

Be sure to review What self-employed expenses can I deduct? before you file. If the only income is from the "business" and the profit (income minus expenses) is less than $400 she would not need to file.

Also, see Do I need to file a federal return this year? and Am I considered self-employed? for more information.

@monkatom

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