What if I didn’t get a 1099-MISC, but made money from self-employment?

If you weren’t paid $600 or more, a business isn’t required to send you a 1099-MISC, but you still need to report the income.

To enter your self-employment income not reported on a 1099-MISC:

1. When in your account, select the Take Me to My Return button on the main screen.
2. Type “Schedule C” in the Search box
3. Select the “Jump to” link.
4. Answer the general questions about your business (or select Edit at the work summary screen).
5. At the Let’s get income for… screen, select Additional Income.

If you did make $600 or more, contact the company or individual you worked for.

Related Information:

• How do I report income from self-employment?

If you are new to being self employed, are not incorporated or in a partnership  and  are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-Misc for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

Publication 334, Tax Guide for Small Business
http://www.irs.gov/pub/irs-pdf/p334.pdf 

Publication 535 Business Expenses
http://www.irs.gov/pub/irs-pdf/p535.pdf 

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

                                              

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next year) if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits. 
 
- 2. You expect your withholding and credits to be less than the smaller of: 
    90% of the tax to be shown on your current year’s tax return, or 
  100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

First, you are required to keep your own accurate and reliable records and use them to prepare your taxes even if you don't receive paperwork from your payers, customers or clients.

Second, you are considered a small business or self-employed person and are required to file a schedule C, where you report your income and expenses, and pay tax on the net profit.  You also pay self-employment tax on the net profit.  The net profit flows to your 1040 form where it is combined with your other income, deductions and credits, and your overall tax is calculated.

You will need the Turbotax Self-Employed version for this (the most expensive version). If your total income is less than $36,000, you can use the IRS free file version which includes Schedule C for free.

https://freefile.intuit.com

Third, your business net income is your gross income minus your costs.  If you are only selling used items for less than you paid, then the money is not taxable, because it is not a taxable gain.  But, you must keep reliable records of the items you sell, and their original purchase date and cost, or as much as you can remember. 

For example, if you sell a dress for $20 that you originally paid $100 for, the $20 is not income.  However, you can't deduct the loss on personal property.  On the other hand, if you buy wood and supplies for $20 and sell birdhouses for $40, you have a net profit after expenses of $20 per birdhouse and that is taxable income.  Or, if you buy items at an estate sale for $100 and sell them for $500 online, that is $400 of taxable profit.  You can also deduct as business expenses your shipping fees, listing fees, and payment processing fees. 

If you don't have any proof of your costs and you are audited, the IRS is allowed to treat the entire $5000 as taxable income. Under the tax code, all income is assumed to be taxable unless you can prove otherwise.  

If you only sold used items for less than you paid, you don't have to report anything, but keep your records for at least 6 years. If you sold at a profit, you need to file a schedule C as part of your tax return.

In Turbotax Self-Employed version, Click the "business" tab to start the business interview and answer the questions.