![]() TurboTax Self-Employed searches for industry specific tax deductions and uncovers business deductions you may not even know about. TurboTax Self-Employed will ask you simple questions about you and your business and give you the tax deductions and credits you are eligible for based on your entries. ĭon’t worry about knowing these tax rules. But, since January 31 st falls on a Sunday in 2021 the deadline for companies to send them out is February 1 st. These 1099-NEC forms should arrive by January 31 st each year. But if you happened to do more than $20,000 worth of sales and had at least 200 transactions, then you may also receive a 1099-K.īeginning with tax year 2022, if someone receives payment for goods and services through a third- party payment network, their income will be reported on Form 1099-K if $600 or more was processed as opposed to the current Form 1099-K reporting requirement of 200 transactions and $20,000. Bonuses or referral fees can also be reported on Form 1099-K.Īs it relates to the goods you sold on Etsy, if you sold $600 or more, then you should receive a Form 1099-NEC with that amount. If you were paid by a third party payment processor and you had at least 200 transactions and $20,000 or more in sales, you will receive Form 1099-K. Generally, for ride sharing apps, the money for your driving services will be reported on a Form 1099-NEC. If this isn’t your first year on one of those platforms, you may be accustomed to getting your earnings reported on a Form 1099-MISC or 1099-K.īut now, depending on how much money you earned, you may receive both a Form 1099-NEC and a Form 1099-K from these side-gig platforms. Many have taken to side-gigs such as driving for a ride-share company or selling goods via Etsy to earn extra money. This year, you may have gotten creative with the ways you earned income. What form will I receive if I worked a side-gig? Note that the amounts reported in Box 1 of Form 1099-NEC are generally reported as self-employment income and thus would be subject to self-employment tax. The Form 1099-MISC is still around, but it’s just used for reporting miscellaneous income like rent, prizes, and awards. The payments made that are not reportable on the 1099-NEC will likely be recorded on Form 1099-MISC. ![]() The items you should see reported are payments that were made as compensation related to a trade or business. If you are self-employed and a business paid you $600 or more for non-employee compensation, you can expect to receive this form.īut the Form 1099-NEC should not be used to report personal payments made to self-employed individuals. What does this mean if you are self-employed? Commission payments to non-employee salespeople not repaid during the year.Fees paid by one professional to another (for example, if they were splitting a fee or paying a referral fee).Attorneys, lawyers, accountants, architects, contractors, and who got paid for a professional service.Self-employed, freelancers, contractors, and side gig workers.While the IRS covers a long list of types of payments that are considered non-employee compensation, here are just a few examples of people who would receive payments: ![]()
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