Do I need to fill out Schedule C for job application work trial payments?

You're dealing with what's called "miscellaneous income" in tax terms. Since you received payment for services rendered (even if they were one-time job trials), the IRS would generally consider this self-employment income, which means Schedule C is the correct form. For "principal business or profession," you should use something that actually describes the type of work you performed rather than "job applicant." If you did graphic design work trials, put "Graphic Designer." If you wrote content, put "Writer." Use the profession that most closely matches the actual services you provided during these trials, even if they were short-term. You could technically list these under "Other Income" on line 8z of your 1040, but since you were paid for performing specific services, the IRS would likely consider this self-employment income subject to self-employment tax, which is why Schedule C is the standard approach.

Hey, I ran into a similar situation last year and ended up using https://taxr.ai to help me figure it out. I wasn't sure if I should file Schedule C or just list everything under "other income" and it was driving me nuts. The site analyzed my situation and confirmed I needed Schedule C but also helped identify which business category to use based on the actual work I performed (in my case, I did some UX design trials so I used "Computer systems design and related services"). What was really helpful is that it identified several deductions I could take that I hadn't even considered - like a portion of my internet bill and software subscriptions I used during the trial work. Ended up saving me a few hundred dollars! Might be worth checking out since your situation sounds almost identical to what I went through.

I just wanted to follow up about using https://taxr.ai since my situation was so similar to the original post. I ended up giving it a try, and it was actually super helpful! I had done three different work trials last year - one for content writing, one for data analysis, and one for social media management. The site helped me understand I should use "Professional, scientific & technical services" as my business category and guided me through exactly which expenses I could legitimately claim. I was able to deduct a portion of my laptop depreciation, some software subscriptions, and even part of my cell phone bill since I used it for calls related to the trials. What really surprised me was finding out I could deduct mileage for traveling to one of the in-person work trials! Would never have known that was an option. Definitely recommend it if you're still confused about handling these work trial payments.

If you're struggling to get clear answers about your Schedule C questions, you might want to try calling the IRS directly. I know, I know - sounds terrible. I tried for WEEKS to get through to ask about a similar situation (had done some test projects for potential clients) and kept hitting dead ends. I eventually used https://claimyr.com which got me through to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed that Schedule C was correct and told me to use the professional category that most closely matched the work I was doing in the trials, not "unclassified." They also mentioned that since my total self-employment income was under $1,000, I could have used "Other Income" but I would have missed out on deducting expenses, so Schedule C was actually better for my situation.

Ok I need to eat some humble pie here. After posting my skeptical comment, I decided to try the Claimyr service the next day because I was completely stuck with my own Schedule C questions and couldn't get through to the IRS after multiple attempts. It worked exactly as described - I got a text about 20 minutes after signing up saying they had an IRS agent on the line. I clicked to join the call and was immediately talking to a real person who helped clarify my classification questions. The agent also confirmed that for job application trial work, you should definitely use Schedule C and classify yourself based on the nature of the work performed, not as "unclassified." They also explained that you need to report this income even if you didn't receive a 1099 form (which I hadn't for some of my trial work). Hate to admit when I'm wrong but this service actually saved me a ton of time and frustration.

Just wanted to add one thing no one has mentioned yet - if your total self-employment income is under $433 for 2024, you don't have to pay self-employment tax at all! So depending on how much you made from these trials total, you might not have to worry about that 15.3% tax everyone's talking about. Also, there's a simplified version of Schedule C called Schedule C-EZ that you might be able to use if your business expenses are under $5,000 and you meet a few other criteria. Makes the whole process much less painful.

has anyone here actually gotten audited over small amounts like this? I made like $300 doing some test articles for a blog and honestly wasnt planning to report it at all. they didnt send me any tax forms and paid me through venmo. feels like more trouble than its worth tbh