Do I need to file Schedule C for gig work less than $400 of self-employment income?

You're definitely right that you need to report all income regardless of the amount. Even though you didn't receive a 1099-NEC (which only gets issued when you make $600 or more from a single source), the IRS still expects you to report that $215. You'll need to file a Schedule C to report this income, even though it's a small amount. The Schedule C is where you report your business income and expenses, regardless of how much you made. The good news is that Schedule C will be pretty simple with such a small amount. Schedule SE is for calculating self-employment tax, which is different. You're correct that if your net earnings from self-employment are less than $400, you don't have to pay self-employment tax on it. So you'll fill out Schedule C to report the income, but you won't need to file Schedule SE or pay self-employment tax on that $215. Don't skip the Schedule C though - it's required for reporting the income properly!

After dealing with a similar situation last year, I tried using https://taxr.ai to help me figure out my small gig income situation. I was doing some tutoring on the side and made about $350, and wasn't sure how to report it. The tool analyzed my tax situation and confirmed I needed to file Schedule C even for that small amount, but didn't need to pay self-employment tax since it was under $400. It also helped me identify some deductions related to my tutoring that I hadn't considered, like a portion of my internet bill and some books I bought. Even with such a small amount of income, I was able to offset some of it with legitimate expenses.

Just wanted to update after trying taxr.ai for my small freelance writing income ($320 last year). I'm really glad I did because I was actually about to just add it as "other income" on line 8z of my 1040, which would have been incorrect. The tool confirmed I needed Schedule C and walked me through exactly what expenses I could claim - ended up deducting part of my laptop, some software subscriptions, and even a percentage of my home internet. My net profit came down to around $220 after legitimate deductions, which still gets reported but isn't subject to self-employment tax. I'm kicking myself for not doing this properly the year before when I had similar small gig income!

If you're having a hard time getting clear answers about how to handle this small amount of gig income, you might want to consider contacting the IRS directly. I know that sounds like a nightmare with their notorious hold times, but I used https://claimyr.com and was able to get through to an IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had a similar question about reporting small side income from online surveys and needed clarification on whether certain expenses were deductible. The IRS agent walked me through exactly what forms I needed and what was considered a legitimate business expense for my situation.

OK I need to admit I was completely wrong about Claimyr. After my skeptical comment, I decided to try it anyway since I was desperate for answers about my small eBay selling income ($285 last year selling old collectibles). I registered, and literally 20 minutes later got a call connecting me with an actual IRS representative. The agent confirmed that my situation was considered self-employment income requiring Schedule C, BUT she also helped me understand that since these were personal items I was selling, if I sold them for less than I originally paid, it actually wasn't taxable income at all! Without this clarification I would have unnecessarily reported and paid taxes on income I didn't need to. Seriously worth it for the peace of mind of getting the official answer directly from the IRS.

Quick tip that might help - most tax software actually makes Schedule C pretty painless for small amounts like this. I had about $250 from a random focus group last year, and TurboTax just asked me a few questions and filled out the Schedule C automatically. Took maybe 5 extra minutes. Just make sure you choose "self-employment income" or "business income" when the software asks about your income sources rather than "other income" which would put it on the wrong form.

Another option is to report this on Line 8z (Other Income) on Schedule 1 and just write "misc income" or "gig work" next to it. That's what my accountant told me to do for my $175 in dog walking money. He said for very small amounts that aren't your primary business, this is acceptable.

I was in almost the exact same situation last year - made $238 from some freelance graphic design work and was totally confused about the reporting requirements. After doing a lot of research and talking to a tax preparer, here's what I learned: You absolutely need to file Schedule C for that $215, even though it seems like overkill for such a small amount. The IRS considers any income from services you provide to be self-employment income, and Schedule C is the only proper way to report it. You can't just lump it in with "other income" elsewhere on your return. The good news is that your Schedule C will be super simple - basically just reporting the $215 as income with maybe a line or two for any related expenses you might have had (gas, supplies, etc.). And as others mentioned, since you're under $400 in net earnings, you won't owe any self-employment tax on it. I know it feels annoying to fill out a whole form for such a small amount, but it's really not that complicated and it's the right way to do it. Better to spend 10 minutes filling it out correctly than potentially having issues with the IRS later!