How to report tutoring income as an independent contractor without receiving a 1099?

Thank you so much! That makes way more sense. So for tax classification, would I select "Sole Proprietor" since it's just me? And what about for the business code - is there a specific one for tutoring or educational services?

Yes, select "Sole Proprietor" since it's just you operating under your own name. For the business code, you can use 611000 which is for "Educational Services" or more specifically 611691 for "Exam Preparation and Tutoring." When it comes to your income, even though you didn't receive a 1099, just enter the total amount you earned from tutoring as your gross receipts or sales. Keep good records of all your payments received in case of any questions later. Remember that since you're self-employed, you'll also need to pay self-employment tax (Social Security and Medicare) on your net earnings, but only if your net earnings are $400 or more.

Does it actually work well for tutoring specifically? I'm also a tutor but I work through three different platforms and none of them sent me tax forms. I'm worried about mixing up what goes where.

I'm a bit skeptical about tax tools - I tried TurboTax last year and it completely missed some deductions my friend told me about later. Does this one actually understand the nuances of gig work like tutoring?

It works great for tutoring! I used it for my income from two different platforms. You can input each income source separately, and it helps you categorize everything correctly. It even reminded me that I could deduct a portion of my internet bill since I was doing online tutoring sessions from home. For gig work specifically, it's much better than general tax software. It asks targeted questions about your specific type of work and knows the common deductions and requirements for different types of independent contractors. It's like having a tax professional who specializes in gig work walking you through everything, but way more affordable.

Wait, how does this actually work? The IRS phone system is notoriously impossible to navigate. Does this service just keep calling for you until they get through?

Sounds too good to be true. I've literally spent 4+ hours on hold with the IRS before giving up. No way something can just magically get you through when millions of people can't get through the normal way.

It works by using automated technology to navigate the IRS phone system and hold your place in line. When a representative becomes available, Claimyr calls you and connects you directly to the IRS agent. It's not actually "skipping the line" - you're still waiting your turn, but their system is handling the hold time instead of you sitting there with a phone to your ear. Yes, it really works! I was super skeptical too. I had tried calling the IRS three separate times, waiting over an hour each time before giving up. With Claimyr, I went about my day and got a call when they had an agent on the line. The technology is surprisingly simple but effective - they basically have systems that can stay on hold for you and recognize when a human answers.

Is that $1,000 just on the tutoring income or total tax liability? I have a regular job with withholding but make about $3k tutoring on the side.

It's based on your total tax liability, but you can avoid penalties if your withholding from your regular job covers at least 90% of your total tax liability or 100% of what you owed last year. If your W-2 job withholds enough to cover your regular income plus most of your tutoring income, you might be fine. But if your tutoring pushes you into a higher tax bracket or your W-2 withholding is just covering your regular job income, you might need to make estimated payments. You can also increase your W-2 withholding by submitting a new W-4 to your employer to cover the extra income from tutoring.

Yes! Those are definitely deductible as business expenses. I'm a math tutor and I deduct my digital tablet, stylus, teaching software, and even a portion of my internet bill since I use them exclusively for tutoring.

Thanks! That's really helpful to know. I've been paying for these subscriptions all year and didn't realize I could deduct them. Do you just keep the receipts and enter them somewhere on the Schedule C?

Yes, you'll enter those expenses on Schedule C in the appropriate sections. Zoom and whiteboard subscriptions would go under "Office expenses" or "Software" depending on how your tax software categorizes them. Keep all your receipts and invoices as backup documentation. Just make sure you can show these expenses are directly related to your tutoring business. Since you're using them specifically for tutoring sessions, they should be fully deductible. If you use any of these tools for personal use too, you'd need to calculate the business percentage and only deduct that portion.

This is such great advice! I had no idea I could deduct professional development expenses. I actually bought a few teaching methodology books this year specifically to help me tutor chemistry better, and I took an online course about working with students who have learning disabilities. Quick question about the home office deduction - I do most of my online tutoring sessions from my kitchen table. Would that still qualify even though I also eat meals there? Or does it need to be a completely separate space that's never used for anything else? Also, what's the best way to calculate the percentage of home expenses? Do I just measure the square footage of the space I use?