Ask the Taxgirl: Forms 1099
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.
