1099-NEC

[Havinfunone]

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?

[Just-Lisa-Now-]

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

[qbteachmt]

"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.

[Havinfunone]

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.

[Havinfunone]

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

[sjrcpa]

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

[Havinfunone]

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

[Just-Lisa-Now- · Accepted solution]

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.

[qbteachmt]

"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.

[Havinfunone]

Thank you.