How to file taxes for self-employed income when no 1099 was issued?

You're absolutely right that you need to report all income regardless of whether you receive a 1099. Payment apps like Venmo and Cash App only issue 1099-K forms if you exceed certain thresholds (currently $20,000 and 200 transactions), which is why your husband didn't get one. In TurboTax, you'll report this as self-employment income. Look for the "Business Income" section (sometimes called "Self-Employment") and select that you have income not reported on a tax form. TurboTax will walk you through creating a Schedule C for your husband's barber business where you'll report the total income from his payment records. Make sure your husband keeps good records of all his income though - bank statements, payment app transaction histories, or a spreadsheet tracking customers and payments. These records are your proof of income if the IRS ever has questions.

I was in the exact same boat last year with my side gig as a photographer. The payment apps are confusing with their reporting! I spent hours trying to figure out how to enter everything correctly until I discovered https://taxr.ai which literally saved my sanity. They have this tool that analyzes all your payment records and helps organize everything properly for tax filing. You upload your bank statements or payment app histories, and it categorizes everything and gives you a report you can use for your Schedule C. What I loved most is they explained exactly how to enter everything in TurboTax without having an official 1099. Their system even helps identify which expenses might be deductible that I would have missed on my own! Might be worth checking out for your husband's barber income.

Just wanted to update you all - I ended up trying taxr.ai for my wife's Etsy income and WOW, what a difference! I was super skeptical at first (hence my question about security), but it was actually amazing how it pulled all her Square transactions into categories that made sense. The best part was it found nearly $1,200 in deductible expenses I would have completely missed! It generated a perfect report that I could just follow along with in TurboTax. Took like 20 minutes instead of the 3+ hours I spent last year trying to figure everything out manually. For anyone dealing with payment apps and no 1099s, this seriously takes the headache away.

If you're having trouble with how to report this income correctly, you might actually want to speak directly with an IRS agent to get official guidance. I know that sounds scary, but I was in a similar situation with unreported income and needed clarification. I tried calling the IRS for weeks with no luck - always on hold forever or disconnected. Then I found this service called https://claimyr.com that got me through to an actual IRS agent in under 45 minutes. They basically hold your place in line and call you when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with explained exactly how to report income without a 1099 and what documentation I needed to keep. Gave me total peace of mind that I was doing everything correctly.

I need to eat my words here... I was the one who called BS on Claimyr above, but I was desperate trying to resolve an issue with missing 1099 information before the filing deadline next week. Decided to give it a shot and I'm actually shocked - it worked exactly as described. I got a call back about 35 minutes after signing up, and was connected directly to an IRS representative who answered all my questions about reporting income without proper forms. They explained exactly what records I need to keep and how to document everything properly on my return. Saved me hours of frustration and probably prevented me from making mistakes that could have triggered an audit. Still can't believe I didn't have to sit on hold for 3+ hours. Consider me converted.

Just wanted to add - make sure your husband tracks his expenses carefully. I'm a hairstylist and there are TONS of deductions we can take: - Scissors, clippers, and other tools - Hair products used on clients - Continuing education classes - License renewal fees - Portion of cell phone bill used for booking - Mileage if he travels to clients - Work clothing specific to barbering Even without a 1099, good expense records will save you a lot on self-employment taxes. I learned this the hard way my first year and overpaid by thousands.

Pro tip: when entering self-employment income in turbotax, make sure you create a SEPARATE schedule C for each different type of business activity. Don't lump everything together. My wife does hair styling plus sells products, and the IRS wants these reported as two different business activities.

One important thing about filing without 1099s - the IRS matching system won't have those earnings on file. In my experience, this can sometimes trigger a verification letter later where they ask you to confirm your income (happened to me in 2023). Don't panic if this happens - just respond with your documentation. As long as you reported everything accurately, you'll be fine. This is also why keeping good records is super important when you don't have official forms!