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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So they have no other income at all? If their only income is $300, they dont have a filing requirement.
"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.
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.
Adding the $300 NEC actually lowers their refund by $201
All income is reportable, whether a 1099 is received for it or not.
I thought you did not need to report self-employment income until it hit $400. Has that changed?
"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.
Thank you.
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