Freelancer Tax

Schedule C is the IRS form where a sole proprietor reports business income and expenses. It is attached to your Form 1040. You do not need an LLC or an EIN to use it — most first-timers file with their SSN. The formula Gross income − Business expenses = Net profit (or loss) That net profit flows to your 1040 for income tax, and to Schedule SE for self-employment tax. ...

The one-sentence version: A 1099-NEC means a client paid you $600 or more as a non-employee. You — not the client — are responsible for reporting that income and paying income tax plus self-employment tax on your profit. If you just opened an envelope (or an email) and thought “Am I in trouble? Do I owe a lot? Did I do something wrong?” — no. This is normal. Millions of freelancers, designers, writers, drivers, tutors, cleaners, and side hustlers get this form every year. ...