Ask an AI Accountant

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.