It's a common misconception that you only have to report your 1099 income if you hit a certain threshold. In reality, every bit of your business profit is taxable income; there’s no minimum threshold before the IRS can tax your 1099 income.
The tricky part about this is that companies that use contract workers aren't required to send out a 1099-NEC unless they have paid that person $600 or more in a given tax year. The 1099-K limit is $20,000! This means that even if you don't receive a 1099 for your work, you'll need to report the income.
However, if you’ve made less than $400 during the tax year, then you won’t have to pay self-employment tax on your income.
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