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Question
Do I need to report income if I got paid for service?
AI accountant’s answer:
Yes, you generally need to report income for any payments you receive for services you've provided, regardless of the amount. This includes payments from self-employment, freelance work, or any other services you perform as an independent contractor. You'll typically report this income on Schedule C (Profit or Loss from Business) when you file your personal tax return, Form 1040. Keep in mind that if you receive more than $600 from a single client or payer in a year, they might send you a Form 1099-NEC (Nonemployee Compensation), which reports the total amount they paid you. However, even if you don't receive a 1099-NEC, you're still responsible for reporting all of your income from services on your tax return.
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Ieva Ivanauskas, EA
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