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August 31, 2022
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1099 K

  • August 31, 2022
  • 1 reply
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Should I file my 1099K separate from my personal taxes?

I sell on Etsy so I should only receive 1 1099K ... correct ?

    Best answer by VolvoGirl

    That is self employment income.  To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.


    Turbo Tax Beginners Tax Guide for the Self Employed
    https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed/L2HLojrj5


    What is form 1099NEC?
    https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-form-1099-nec/L5fbwIFSn


    Here is some IRS reading material……
    IRS information on Self Employment
    https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center


    Publication 334, Tax Guide for Small Business
    https://www.irs.gov/pub/irs-pdf/p334.pdf


    Publication 535 Business Expenses
    https://www.irs.gov/pub/irs-pdf/p535.pdf

     

    You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

    1 reply

    VolvoGirl
    August 31, 2022

    No you have to report all your income on the same 1040 tax return.  What are you selling?  Personal items or things you make?  If youhave self employment income you fill out Schedule C in your tax return.  

    Diane PAuthor
    August 31, 2022

    I sell Silk floral wreaths using an online platform.  How do I know if I'm considered self-employed to fill out the schedule C

    VolvoGirl
    VolvoGirlAnswer
    August 31, 2022

    That is self employment income.  To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.


    Turbo Tax Beginners Tax Guide for the Self Employed
    https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed/L2HLojrj5


    What is form 1099NEC?
    https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-form-1099-nec/L5fbwIFSn


    Here is some IRS reading material……
    IRS information on Self Employment
    https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center


    Publication 334, Tax Guide for Small Business
    https://www.irs.gov/pub/irs-pdf/p334.pdf


    Publication 535 Business Expenses
    https://www.irs.gov/pub/irs-pdf/p535.pdf

     

    You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.