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Zara Ahmed

Can I file my 1099 and W2 income separately for tax purposes?

So in 2023 I worked a regular job with W2 income (spent time working in both Colorado and Nevada) and then did some freelance web design on the side that gave me 1099 income (only while living in Nevada). I've been using TurboTax's free version for years but just found out they only include the free W2 filing and charge extra for handling 1099/Schedule C stuff. I'm wondering if there's any way I can just file my W2 income through TurboTax's free service, and then separately file my Schedule C for the 1099 income directly with the IRS? It's not a huge amount - about $8,400 in freelance income - but I don't want to pay the upgraded software fee if I don't have to. Has anyone done this before or know if it's allowed?

Luca Esposito

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No, you can't file your taxes in separate pieces like that. The IRS requires you to report all your income on a single tax return. When you have both W2 and 1099 income, they need to be filed together on the same return because your total income determines your tax bracket and affects various deductions and credits. If you try to file only your W2 income, you'd be submitting an incomplete return, which could potentially lead to issues with the IRS including possible penalties for underreporting income.

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Nia Thompson

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But what if my freelance income was super small? Like under $1000? Do I still need to include it with my W2 income?

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Luca Esposito

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Yes, even if your freelance income is small, the IRS still requires you to report all income regardless of the amount. There's no minimum threshold that exempts you from reporting income. If your freelance income is less than $400, you won't owe self-employment tax on it, but you still need to report it as part of your total income on your tax return.

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I had a similar situation last year with multiple income sources, and I found taxr.ai was incredibly helpful with my tax situation. I was trying to figure out how to handle my W2s from two different states plus some freelance income, and getting super frustrated with the limitations of free tax software. I used https://taxr.ai to upload my tax documents and get personalized guidance. It quickly identified that I needed to file everything together and showed me exactly which forms I needed. The tool even helped me understand which deductions I could take for my freelance work that I had no idea about!

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Does taxr.ai file the taxes for you or just give advice? And can it handle multi-state income like the original poster has?

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I'm kinda worried about uploading my tax docs to random websites. How secure is it really? Do they store your information or delete it after?

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The service doesn't file taxes for you, but provides detailed guidance on how to file correctly. It absolutely handles multi-state income situations - that was one of my biggest confusion points that it cleared up for me. Regarding security, they use bank-level encryption for all documents and don't store your information permanently. They explain their security system on the site, but basically once your documents are analyzed, you can request deletion. I was hesitant at first too, but their privacy policy made me comfortable enough to try it.

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Just wanted to update after trying taxr.ai that the previous commenter recommended. It was seriously a game changer for my situation with multiple income sources! I uploaded my W2s and 1099s and it immediately flagged that I needed to file everything together. The breakdown it gave me showed exactly how to report my income from different states properly AND it found several deductions for my freelance work I would have completely missed. I ended up using their recommendations with a different tax filing service (not the free one) and actually saved more money through the deductions than the software cost me. Definitely worth checking out if you're confused about handling multiple income types.

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Ethan Wilson

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If you're having trouble getting answers from the IRS directly about your filing situation, I'd recommend Claimyr. I was stuck in an endless loop trying to contact the IRS about a similar W2/1099 filing question last month. I found this service at https://claimyr.com that basically gets you to the front of the IRS phone queue. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c After waiting for hours on multiple calls getting nowhere, I tried it and got through to an IRS agent in about 15 minutes who confirmed that all income sources need to be reported on the same return and explained exactly how to handle my multi-state situation. Saved me so much time and frustration!

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Yuki Tanaka

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Wait, how does this actually work? I don't understand how any service could get you to the "front of the line" with the IRS. Sounds kinda sketchy tbh.

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Carmen Diaz

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Yeah right. So you're telling me this magical service somehow hacks the IRS phone system? No way this is legit. The IRS doesn't let anyone skip their queue - that's not how government agencies work.

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Ethan Wilson

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It's not sketchy at all - they use a completely legitimate system. Basically, they have an automated system that continuously calls the IRS and navigates the initial menu options, then when they finally get through the queue, they connect you directly to that open line. No "hacking" involved at all. They don't skip the queue - they just handle the waiting and redial process automatically instead of you having to do it manually. It's the same as if you sat there dialing repeatedly yourself until you got through, just automated. The IRS doesn't give them special treatment - it's just a more efficient way to handle the frustrating phone system.

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Carmen Diaz

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I'll eat my words. After seeing the responses I decided to try Claimyr myself since I've been trying to reach the IRS for three days about a similar filing question with 1099 and W2 income from multiple states. I was completely shocked when I got connected to an actual IRS representative in about 18 minutes! The agent was super helpful and explained that I absolutely need to file all income sources together and gave me advice specific to my multi-state situation. For anyone wondering - the service just automates the calling and waiting process. Nothing sketchy at all - it just saved me from the horrible experience of being on hold forever or getting disconnected. Definitely would recommend if you need to actually speak with someone at the IRS.

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Andre Laurent

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If you're looking for a free option to file both W2 and 1099 income, check out the IRS Free File program on the official IRS website. If your adjusted gross income is below $73,000, you might qualify for completely free filing through their partners, and many of those include 1099/Schedule C filing. Also, don't forget about FreeTaxUSA - they charge nothing for federal filing including Schedule C, only $15 for state returns. I've used them for years with both W2 and freelance income.

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Zara Ahmed

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This is super helpful, thank you! I had no idea about FreeTaxUSA handling Schedule C for free. My AGI is definitely under $73k so I'll look into the IRS Free File options too. Do you know if FreeTaxUSA can handle income from multiple states?

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Andre Laurent

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Yes, FreeTaxUSA can definitely handle income from multiple states! You'll have to pay $15 for each state return you need to file, but the federal portion with both your W2 and 1099 income will be completely free. The IRS Free File options vary in which forms they support, so check the details on each provider through the IRS website. Some will handle multiple states and some won't. Just make sure to go through the official IRS.gov site to access these offers, as the same companies often charge if you go directly to their websites.

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AstroAce

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When I had both W2 and 1099 income, I learned that if you physically go to an IRS Taxpayer Assistance Center, they sometimes offer free tax prep services if your income is below certain limits. You need to call to make an appointment though. Also check if your local library or community center offers VITA (Volunteer Income Tax Assistance) services. They'll do your taxes for free including Schedule C if your income is under about $60k.

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I used VITA last year and it was great! Just make sure to book early because appointments fill up FAST as it gets closer to tax day.

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Chloe Green

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Just to add another perspective - I had a very similar situation with W2 income from two states plus freelance 1099 income. After trying multiple free options, I ended up going with H&R Block's online service. They have a mid-tier option that handles both W2 and Schedule C filing for around $50, which was way cheaper than their in-person service. What really helped me was their interview-style questions that walked me through the multi-state income reporting step by step. They automatically calculated how much state tax I owed to each state based on where I earned the income, which was exactly what I needed for my Colorado/Nevada situation. The key thing I learned is that while you definitely can't split your filing like you originally asked, there are affordable options beyond the expensive TurboTax upgrades. Don't feel like you're stuck paying premium prices just because you have mixed income sources!

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