You have the right TurboTax edition to report this for your son. You will be reporting it on Schedule C Profit or Loss from Business. He is considered to be an Independent Contractor.
Most people get a Form 1099-MISC in the mail when they do contract or freelance work and make over $600. It's possible your son didn't make more than $600 from any one agency.
Since you didn't receive a 1099-MISC, you can report other income simply by following the instructions below:
1. Sign into you TurboTax account.
2. Click Pick up where I left off (if not already open)
3. Click Federal Taxes tab
4. Click Wages & Income sub category.
5. Select I'll choose what I work on option.
6. Scroll all the way down to the Miscellaneous Income, 1099-A, 1099-C (under less common income) and click Start/Update.
7. Click Start/Update next to Other income not already reported on a Form W-2 or Form 1099 and follow the online screen prompts to enter your income.
You probably have some expenses. If the net profit amounts to less than about $410, it won't generate any Self-Employment taxes which are typically about 15% of the profit in addition to any regular income tax.
Here are some expenses that may help you do that:
- Communication costs, for example cell phones, data plans, internet or wireless services, land or fax lines, long-distance charges, voicemail or answering services, call waiting, etc.
- If also used for personal reasons (for example, internet service), then only the proportion used in business is allowed as an expense
- Office supplies (paper, toner, writing instruments, etc.), software, stamps, envelopes, shipping materials, cleaning supplies
- Any licenses or permits that are required for your profession
- Fees and membership dues you paid to professional associations or unions
- Continuing education or certification related to your work
- Mileage accumulated during the course of your work
- However, regularly commuting to and from a fixed office wouldn't qualify
- Advertising costs, including business cards and websites
- Fees for attorneys, consultants, accountants, and other professionals
- Liability insurance, errors and omissions insurance, surety bonds
- Credit card and bank fees
- Health care premiums
As a self-employed writer, artist, or performer, you can write off these expenses in addition to the ones listed above:
- Equipment, like musical instruments, easels, recorders, stage props
- Supplies such as canvas, paint, makeup
- Costumes (if unsuitable for everyday wear)
- Books, magazines, or other reference materials used in your work
- Advertising, including websites
- Agent commissions
- Cell phones, data plans, and second phone line
- Vehicle expenses or standard mileage
- Travel expenses such as airfare, auto rental, and lodging
These out-of-pocket expenses will offset (reduce) your earnings, lowering the amount of income you pay taxes on.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.