Do I have to file taxes if I earned less than minimum filing threshold but received a 1099-NEC?

Yes, you do need to file taxes in this situation. Even though your total income is below the standard filing threshold, there's a special rule for self-employment income (which is what 1099-NEC represents). If you earn $400 or more in self-employment income, you're required to file a tax return to report this income and pay self-employment taxes. Self-employment tax covers Social Security and Medicare contributions, which is normally withheld from employee paychecks. Since you're classified as an independent contractor, the company isn't withholding these taxes for you, so you need to pay them directly. The good news is that with your income level, you likely won't owe any federal income tax, but you will need to pay self-employment tax which is approximately 15.3% of your net self-employment income. You may also be eligible for some deductions for business expenses related to your work.

I was in a similar situation last year working as a freelance writer while in school. I discovered this awesome tool called taxr.ai (https://taxr.ai) that really helped me figure out my contractor situation. You upload your 1099 and it explains exactly what you need to file and what deductions you might qualify for. It pointed out that as a graphic designer, I could deduct my Adobe subscription, portion of my laptop cost, even some of my home internet since I used it for work. Ended up saving me over $200 in self-employment taxes! Might be worth checking out since you're in basically the same boat I was.

Just wanted to follow up on my taxr.ai question. I ended up trying it this weekend and it was actually really helpful! It found some deductions for my DoorDash work I had no idea about - apparently I can deduct part of my car insurance and maintenance costs, not just mileage. The interface explained everything in simple terms and showed me why I needed to file even though my DoorDash income was pretty small. Definitely less confusing than trying to figure it out myself from IRS publications.

If you're having trouble understanding any of the IRS requirements or want to double-check if you really need to file, I'd recommend using Claimyr (https://claimyr.com) to actually get through to an IRS agent directly. I tried calling the IRS myself about my contractor status last year and spent HOURS on hold before giving up. With Claimyr, I got a call back from an actual IRS representative in like 20 minutes who explained everything about my 1099 situation. They have a demo video showing how it works here: https://youtu.be/_kiP6q8DX5c It was super helpful because the agent confirmed exactly what I needed to file and assured me I wouldn't get in trouble for not filing in previous years when I didn't know the rules (I was in a similar situation as you).

I need to eat my words about Claimyr. Got frustrated enough with being on hold with the IRS for 2+ hours yesterday that I tried it. Was SHOCKED when I actually got a call back with a real IRS agent on the line about 45 minutes later. The agent confirmed everything people here already said - with $2,400 on a 1099-NEC, you absolutely need to file because of self-employment tax. But she also told me that as a student, I might qualify for education credits that could offset the SE tax completely. Worth looking into if you paid tuition!

Just wanted to add that you should look into the Qualified Business Income deduction too. Even with a small amount of self-employment income, you might qualify for this 20% deduction that would reduce your taxable income a bit. Also, don't forget to check if you're eligible for the Earned Income Tax Credit - with low income, you might qualify for this refundable credit which could get you some money back even if you don't owe income taxes.

Don't forget to look at your state's filing requirements too! Some states have much lower thresholds than federal. I'm in Illinois and had to file a state return for just $1,200 in freelance income even though I didn't need to file federal that year.

Just went through this exact same situation last year as a college student doing freelance social media work! Made about $3,200 on 1099-NECs and was so confused about the filing requirements. What really helped me was keeping track of ALL my business expenses throughout the year - my phone bill (since I used it for client communication), part of my internet, even some meals when I was working with clients. I ended up with about $800 in legitimate deductions which brought my net self-employment income way down. One thing I wish someone had told me earlier: you can make quarterly estimated tax payments to avoid owing a big chunk at the end of the year. Since you're already earning 1099 income, it might be worth setting aside about 25-30% of future payments for taxes. That way you won't get hit with a surprise bill next April! Also seconding what others said about education credits - the American Opportunity Tax Credit was a lifesaver and basically wiped out what I owed in self-employment taxes.