How To Report Tax On The Income From Freelance Work If I Don’t Receive A 1099-misc?
My wife wrote an article that appeared on a newspaper and got some contribution fee. She didn’t receive a 1099-MISC, but the newspaper did get her Social Security Number. Thanks for any comments!
While it is true that this income would need to be reported on a Schedule C, I think it would probably be fairly easy to eliminate the income with expenses related to her work on this article (paper, research, software, etc.) so that you wouldn’t have to pay any self-employment tax on this income.http://www.refundaccounting.com
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Sorry for not getting back to you sooner. Here’s a link that says the IRS wants all hobby income reported as “other income” on Form 1040, line 21. http://www.irs.gov/individuals/article/0…
Also, hobby expenses are deductible to the extent of hobby income (hobby’s can have net income, but not net losses). http://www.irs.gov/faqs/faq-kw125.html (question 12.7)
Generally, a hobby is something which you don’t do on a regular basis and an activity for which you don’t expect to make a profit doing.
I’m assuming your wife was working as an independent contractor and not as an employee. If this is the case, then your wife would have to report her income from this on a schedule C/EZ and may have to pay self-employment tax if she made a certain amount that escapes me at the moment.
But, all gross proceeds from independent contractor work go on a Schedule C.