I worked for a 501(c)3 last year and they also didn't send a 1099. When I called them about it, they said they "don't do that for contractors under $10k" which is completely wrong! Any payment over $600 requires a 1099-NEC. Just be aware that when you report this income without a matching 1099, there's a slightly higher chance of getting flagged for review (not necessarily an audit, just verification). This happened to me, and I just had to show my bank statements proving the deposits matched what I reported. No big deal, but keep your documentation organized just in case.

Don't panic - you're in a manageable situation! Since you earned $5,950, you'll definitely need to report this as self-employment income on Schedule C, even without the 1099. The non-profit was required to send you a 1099-NEC since you earned over $600, so definitely follow up with them about it. Here's what to do in FreeTaxUSA: Go to the "Self-Employment" or "Business Income" section and enter your consulting income there. You'll pay self-employment tax (about 15.3%) on this income, but you can deduct business expenses to reduce your taxable amount. Think about any supplies, home office space, mileage, or equipment you used for this work. Since you're continuing this work in 2024, start keeping better records now - create simple invoices for each payment, track all business expenses, and consider making quarterly estimated tax payments to avoid a big bill next year. The key is having good documentation, whether or not you get proper forms from the organizations you work with. You've got this! The fact that you're being proactive about reporting everything correctly shows you're on the right track.

A little tip from someone who's dealt with this Gusto W4 issue before - take a screenshot or document the changes you make to your W4 settings and the date you made them. I've had issues where changes I made didn't actually get processed correctly, and having that documentation made it much easier to get it fixed and even get a payroll correction when necessary. Also worth noting that depending on when in the pay period you make the change, it might not take effect until the next paycheck. Gusto typically has a cutoff date for payroll processing where changes made after that date roll to the next cycle.

Just wanted to add another perspective for anyone dealing with variable income like you mentioned. I'm also hourly with fluctuating pay, and what's worked well for me is using a combination approach: 1. I use the IRS calculator quarterly like Miguel suggested, but I also keep a simple spreadsheet tracking my year-to-date income and taxes withheld after each paycheck 2. For Gusto specifically, I've found their customer service is much better if you call during off-peak hours (early morning or late afternoon) - you're more likely to get someone who actually understands tax withholding One thing that caught my attention in your post - you mentioned not seeing any difference in withholding after updating Step 3. Double-check that you're looking at the right line on your paystub. Sometimes the change shows up in "Federal Income Tax" but not necessarily in the total withholding if other deductions changed too. Also, since you're trying to get close to zero refund, consider that with variable income, it's often better to err slightly on the side of overwithholding rather than underwithholding to avoid potential underpayment penalties. The quarterly approach really helps with this!

Quick question - I have one rental property that I pretty much just collect checks on (property management company handles everything) but I'm also starting to flip houses this year where I'm doing renovations myself and then selling. Would I use Schedule E for the passive rental and Schedule C for the flipping business?

This is such a helpful thread! I'm dealing with a similar situation but with a twist - I have two rental properties that I manage myself, plus I recently started offering short-term rentals (Airbnb) in one of them. From what I'm reading here, my traditional long-term rentals would go on Schedule E. But I'm wondering about the Airbnb income - does that stay on Schedule E too, or does the "active" nature of short-term rentals (cleaning, guest communication, restocking supplies) push it into Schedule C territory? Also, @Noah Torres, your explanation about self-employment tax was really clear. So if I'm understanding correctly, even though I'm actively managing my properties (repairs, tenant screening, etc.), as long as I'm not providing management services to OTHER people's properties, I avoid the 15.3% self-employment tax by using Schedule E? I've been overthinking this for weeks and this discussion is finally making it click!

Anyone know if this applies to scholarships as well? I received merit scholarships that exceeded my tuition, and the excess was refunded to me. Used it for apartment rent near campus. Never reported it because I thought scholarships were tax-free...

I'm going through this same issue right now! My community college gave me Pell Grant refunds of about $2700 each semester that I used for my car payment. I'm filling out my taxes right now - where exactly on the 1040 do I report this income? Under "Other income" on Schedule 1?

Has anyone ever had to file an amended return because of this kind of year-end paycheck issue? My employer included my Dec 30 deposit on my 2024 W2 and I'm worried they won't fix it in time.

This is a really helpful thread! I'm dealing with something similar but with a twist - my employer gave me a year-end bonus that was deposited December 29, 2023, but they're saying it will be on my 2024 W2 because it was "earned" in 2024. From what I'm reading here about constructive receipt, it sounds like they're wrong since I had access to the money in 2023, right? The deposit date should be what matters, not when they decided I "earned" it?