Question

Self employed income of $375, 1099K, and W-2

Forum|Forum|6 years ago
February 4, 2020
1 reply
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Hello,

In 2018, I had a W-2 for 9 months and I worked as a self-employed contractor for the rest of the year and filed a Schedule-C.

In 2019, I received $375 income from my self-employed business as I only worked as a contractor the month of January. In February, I became a full-time employee for the rest of 2019 and have a W-2 for that.

Info:

- I have a home office and worked exclusively from it for all of my self-employed income.

- I received no 1099 for the $375

- I DID receive a 1099-K including the $375

My question:

For 2019, should I include my self-employed income of $375 on line 21 of form 1040? Or should I file a Schedule-C and include all my expenses as deductions, etc. My concern is that my Schedule-C would likely claim a loss because my expenses would out weight my income. I'm curious what the implications of this would be?

Thanks for your input!

Tax Advice

A

AnnetteB6

Since you were still considered self-employed in January 2019, you should file the Schedule C to include your income and expenses during that time.

If you are no longer operating your 'business', then indicate that as you go through the Schedule C (there will be a button or check-box used for this purpose). Pay close attention to the depreciation section when you go through the Home Office so that you indicate that the home office is no longer being depreciated. Be sure that you are only claiming expenses related to the time that you were self-employed (January). If you end up with a loss, then that's OK because you are not reporting a full year and you are no longer doing business.

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