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1099-NEC

Havinfunone
Level 3

I have a client that received a 1099-NEC for $300. That is below the required $600 required limit. It is also below the $400 reporting limit. They have no other income that would og with this form. Do I need to enter it just because they received a 1099-NEC?

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Just-Lisa-Now-
Level 15
Level 15
all income needs to be reported, no SE taxes kick in until youre over the $400 mark, so for only $300 if you enter it as Sch C or as Other Income the tax will be the same.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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9 Comments 9
Just-Lisa-Now-
Level 15
Level 15

So they have no other income at all?  If their only income is $300, they dont have a filing requirement.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15

"They have no other income that would og with this form"

And no expenses, and no need to file for the EIP refundable credits? Because "refundable credit" = Money Back, if they qualify.

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"Level Up" is a gaming function, not a real life function.
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Havinfunone
Level 3

No, they have other taxable income and even have another Schedule C but the other NEC income is the spouses and is in a totally different industry.

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Havinfunone
Level 3

Adding the $300 NEC actually lowers their refund by $201

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sjrcpa
Level 15

All income is reportable, whether a 1099 is received for it or not.


Ex-AllStar
Havinfunone
Level 3

I thought you did not need to report self-employment income until it hit $400. Has that changed?

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Just-Lisa-Now-
Level 15
Level 15
all income needs to be reported, no SE taxes kick in until youre over the $400 mark, so for only $300 if you enter it as Sch C or as Other Income the tax will be the same.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
qbteachmt
Level 15

"I thought you did not need to report self-employment income until it hit $400."

Even if they never got a 1099, it would be reported because they got taxable income.

"no SE taxes kick in until youre over the $400 mark"

Once you enter everything that applies, the amount that flowed into the Schedule SE then is evaluated: "if that is less than $400, stop; you don’t owe self-employment tax."

You won't know until you fill in everything.

 

*******************************
"Level Up" is a gaming function, not a real life function.
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Havinfunone
Level 3

Thank you.

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