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Another option you could consider is FreeTaxUSA. I've used it for years with my self-employment income. They charge nothing for federal filing (even with Schedule C) and only $15 for state. Saved me a ton compared to TurboTax's $160+ pricing.
Does FreeTaxUSA have the same deduction-finding capabilities as TurboTax though? I've heard TurboTax is better at finding all possible deductions for self-employed people, which could save more than the price difference.
In my experience, FreeTaxUSA covers all the same deductions as TurboTax. It asks about all business expenses like supplies, equipment, mileage, home office, health insurance, etc. The interface isn't as fancy, but all the same deductions are there. The main difference is that TurboTax might ask more "leading" questions that prompt you to remember certain expenses, while FreeTaxUSA sometimes requires you to be more knowledgeable about what you can deduct. But if you take a little time to research self-employment deductions for your specific profession beforehand, you won't miss anything.
I do taxes for several barbers and I'll tell you what I tell them - if you're getting a 1099-NEC, you NEED the self-employed version of whatever tax software you choose. Here's why: 1) You have to file Schedule C to report your income properly 2) You're missing out on THOUSANDS in deductions if you don't track business expenses 3) You have self-employment tax to calculate (extra 15.3% on your profits) Most barbers I work with can deduct: - Chair rental - Supplies (clippers, scissors, products) - Continuing education - Uniforms/work clothes - Business percentage of phone - Mileage if you travel between locations Don't cheap out on the software and miss these deductions!
Something no one has mentioned yet - you might actually be OWED money by the IRS if you had any withholding from that W2 job when you were 17. If you were under the filing threshold but had taxes withheld, you could have been due a refund. Unfortunately, you can only claim refunds for 3 years back, so that money is probably gone now. But going forward, make sure you're looking at the whole picture - it's not always just about what you owe them.
I never even thought about that. Is it possible I missed out on refunds from my self-employment years too? I definitely had some business expenses that I'm guessing would have been deductible.
Yes, it's entirely possible you could have qualified for refunds during your self-employment years too. As a self-employed plumber, you likely had significant business expenses that would have been deductible - tools, supplies, vehicle expenses, mileage, possibly even a portion of your phone bill or home expenses if you used them for business purposes. The unfortunate reality is that if those potential refunds were from more than 3 years ago, they're likely forfeited. However, this is even more reason to get current with your tax filing - you might be leaving money on the table for more recent years, and you'll want to properly claim your legitimate business deductions going forward.
I work in construction too and my boss paid me under the table for years. Finally got caught when I tried to get a mortgage and couldn't prove my income. My advice - fix this BEFORE you need a loan, want to buy a house, or try to do anything that requires proof of income. Not filing makes life complicated in ways you don't expect until you hit them. Plus, you're missing out on things like Social Security credits that will matter when you're older.
Just FYI - this issue happens because in 2020 the IRS moved nonemployee compensation from 1099-MISC box 7 to the new 1099-NEC form. Many businesses still haven't updated their accounting systems and are using outdated forms incorrectly. If your editing work was done as an independent contractor, it should be on a 1099-NEC nowadays, not in ANY box on a 1099-MISC.
So what happens if the company refuses to give me a corrected form? My former client insists they're right even though I know they're using the wrong form.
If they refuse to correct the form, document your attempts to get it fixed (keep emails or notes from phone calls). Report the income correctly on your tax return using Schedule C regardless of their error. You can also file Form 8919 "Uncollected Social Security and Medicare Tax on Wages" if you believe you were misclassified as an independent contractor when you should have been an employee. The IRS may contact the company directly once they see the discrepancy in reporting methods.
Has anyone used TurboTax to handle this situation? I'm wondering if it will flag this as an error when I input the 1099-MISC with amounts in box 1 but indicate it's for freelance work.
I used TurboTax last year with a similar issue. Just enter the 1099-MISC exactly as it appears, but when it asks what type of income it is, select "business/self-employment" rather than "rental income." The software will place it correctly on Schedule C. It might give you a warning about the mismatch, but you can add a note explaining the company issued it incorrectly.
One little-known option: if you're paying a friend's vehicle expenses because you're using their car regularly (like borrowing it for work), you might be able to deduct it as a business expense depending on your situation. I'm self-employed and was using my brother's truck for deliveries. My tax guy showed me how to document this as a business arrangement with proper paperwork, and I was able to deduct a portion of the costs including registration as a business expense. Might be worth talking to a tax pro if this applies to your situation.
Wouldn't this be risky though? Sounds like it could trigger an audit if you're deducting expenses for a vehicle not in your name.
It's not risky if you document everything properly and have a legitimate business reason. The key is having a written agreement showing you're essentially "renting" or "leasing" the vehicle from your friend for business purposes. You'd need to issue them a 1099 if you paid them over $600 in a year, and they would need to report that income. Without proper documentation though, yes, it would definitely raise red flags. This only works in true business situations, not just as a way to deduct helping a friend.
Has anyone actually itemized deductions recently? With the standard deduction being $13,850 for single filers for 2025, unless you have a mortgage or massive medical expenses, it's probably not even worth worrying about deducting vehicle registration fees. Most people don't even reach the threshold where itemizing makes sense anymore.
This is actually a really good point. I stressed about tracking all these little deductions last year only to find out I was still better off with the standard deduction. Unless you have major expenses, the math rarely works out to itemize these days.
Ashley Adams
Another option - if you got a refund last year and they paid you interest on it (which is what the 1099-INT is for), the amount is usually pretty small. Like under $10 for most people unless you had a massive refund that was delayed for months. If you absolutely can't get the form or transcript, you could make a reasonable estimate based on your refund amount and when you received it. The IRS typically pays interest on refunds issued more than 45 days after the filing deadline.
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Alexis Robinson
β’Is it worth even reporting if it's just a few dollars? Would the IRS really care about such a small amount of interest income?
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Ashley Adams
β’Technically, you're required to report all income regardless of the amount. The IRS already has this information on file since they issued the 1099-INT, so their system will expect to see it on your return. If you don't report it, you might get a CP2000 notice later (a discrepancy letter) which is more hassle than just reporting it correctly now. Even for small amounts, it's better to include it and avoid potential issues down the road.
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Aaron Lee
For anyone coming across this post later - I found another way to get this info. If you used tax software last year, log into your account and check if they offer a "tax documents" section. I discovered TurboTax actually has my 1099-INT from the IRS already imported for this year even though I never entered it manually! Apparently, they pull this data automatically from the IRS database when you start a new return. Saved me a ton of trouble.
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Chloe Mitchell
β’Really? I use H&R Block and don't see this feature. Which tax software are you using that does this automatic import?
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