Taxpayer asks: I made $400 from my freelance work. Why didn’t I receive a form W-2? Does this mean that I don’t have to report the income?
Taxgirl says: You don’t receive a form W-2 if you’re classified as an
independent contractor (more on that in future posts). You’ll receive a form 1099 from the paying company if you received more than $600 in compensation for your services during the tax year. You are still on the hook for reporting income even if it’s less than $600 – it’s still income. It’s easy enough to report on
your return and you can take deductions to offset the income.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying
on any information given on this site, contact a tax professional to discuss your particular situation.
Similar Posts:
- Ask the taxgirl: Reporting 1099 Income
- Ask the taxgirl: Responsibility to Ensure Independent Contractor Files?
- Ask the taxgirl: Where are my tax forms?
- Ask the taxgirl: Prior year forms 1099 and W-2
- Ask the taxgirl: Timing of payments
{ 9 comments… read them below or add one }
Can I report 1099-Misc income on my joint return with my husband on our 1040?
Do you have to send a 1099 if the company is incorporated?
Generally, no. There are some exceptions. Check out this prior post about issuing forms 1099 for more details.
We paid out private money for health caregivers last year to several private caregivers. We are not a business. Must we send them 1099 forms?
Without knowing the specifics, I’d say no. Individuals rarely issue forms 1099 for personal services. I’m guessing this is a run of the mill health care bill? If so, then no. Individuals generally do not issue one to doctors, nurses, pharmacies, etc., if even over $600.
Is there a limit on the amount of money that can be reported via a 1099-misc form? I was told $1500 but that does not seem right.
No, there’s no limit. I’ve seen 1099-MISC for independent contractors in excess of $100,000.
My wife has a Invesco AIM & Charles Schwab account. We received a 1099-Div from AIM nothing from Charles Schwab should we have? They both lost is there anyway that can be recouped??
hello taxgirl i have started a new job as a secretary my managerhas aked me to find info about 1099 forms every time i try to look for info on it all i see is how to buy the cd for 19.99 can you plaese help me answer a few questions???????