Received 1099-NEC but not self-employed - How should I file my taxes?

If you received a 1099-NEC, the company classified you as an independent contractor rather than an employee, regardless of how the job actually felt to you. Unfortunately, this is pretty common in retail and other industries these days. For tax purposes, you do need to report this as self-employment income on Schedule C, even though you weren't really "running a business" in the traditional sense. The downside is you'll have to pay self-employment tax (about 15.3%) on top of income tax. However, you might have some deductions you're not considering. Did you use your phone for work? Drive anywhere for the job? Purchase any supplies or clothing specifically for this role? Even small deductions can help reduce your tax burden. Just make sure they're legitimate business expenses. Also, keep in mind that since it's a relatively small amount ($2,100), the overall tax impact won't be huge. But it's worth filing correctly to avoid any issues with the IRS down the road.

Hey there! I had almost the exact same situation last year. Got a 1099 for what was basically a regular job at a small shop. I struggled with all the self-employment stuff until I found this awesome service called taxr.ai (https://taxr.ai) that really helped me figure it out. I uploaded my 1099-NEC to their system and it analyzed everything automatically. It showed me exactly what to report and identified potential deductions I hadn't even thought about - like a portion of my phone bill since I used it to communicate with my manager, and even some mileage deductions for when I had to travel between locations. The best part was it explained everything in normal human language instead of confusing tax jargon. Seriously saved me so much stress trying to figure out if I was doing it right!

Just wanted to update after trying taxr.ai that someone mentioned above. It was actually really helpful for my situation! I uploaded my 1099-NEC and it immediately identified that I should be filing Schedule C. What surprised me was it found about $475 in deductions I would have completely missed - like a portion of my cell phone bill, some work clothes I had to buy specifically for the job, and even some mileage when I had to travel between locations. The explanations were super clear about what qualifies and what doesn't. It also explained the whole self-employment tax situation in a way that finally made sense to me. Definitely feeling more confident about filing now instead of just guessing my way through it!

If you're still struggling with questions after filing, you might want to consider calling the IRS directly. I know that sounds like a nightmare (it usually is), but I found this service called Claimyr (https://claimyr.com) that actually gets you through to a human at the IRS without the ridiculous wait times. I had a similar situation with contractor vs. employee classification and needed to ask some specific questions. Called the regular IRS number and was told the wait was over 2 hours! Used Claimyr instead and got through in about 10 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with actually gave me some really helpful guidance about my specific situation and confirmed I was filing correctly. Saved me a ton of stress wondering if I was doing it right.

Well I owe everyone an apology, especially the person who mentioned Claimyr. I was super skeptical but I was also desperate because I had questions about my 1099 situation that I couldn't find clear answers to online. I tried Claimyr yesterday and got connected to an IRS agent in about 15 minutes. The agent was actually super helpful and confirmed that yes, I do need to file Schedule C even though I don't consider myself "self-employed" in the traditional sense. She also explained that I can take deductions for legitimate business expenses even if they're small. After years of trying and failing to reach the IRS, this was honestly life-changing. Sorry for being such a doubter before!

One thing nobody's mentioned yet - make sure you're setting aside money for next year if you're still doing 1099 work! I learned this the hard way. The first year I got a 1099, I paid the taxes and thought I was good. Then the next year I got hit with an underpayment penalty because you're supposed to be making quarterly estimated tax payments when you have self-employment income. It wasn't huge but still annoying. If your total tax due is more than $1,000 at the end of the year, you might face penalties for not making those quarterly payments. Just something to keep in mind if you continue getting 1099s!

Have you considered asking the company to reclassify you as an employee instead of a contractor? If you were working regular hours at their location using their equipment, you might actually legally be an employee not a contractor. Companies sometimes misclassify workers as contractors to avoid paying employment taxes and benefits. It's actually pretty common in retail. If you were treated like a regular employee in practice, you might have been misclassified. Just something to consider if you're still working there or plan to in the future!

Just wanted to chime in as someone who went through this exact situation a couple years ago! I worked what felt like a regular retail job but got hit with a 1099-NEC at tax time. One thing I wish I'd known earlier - even though you have to file Schedule C and pay self-employment tax, you might qualify for the Qualified Business Income (QBI) deduction under Section 199A. This can give you up to a 20% deduction on your self-employment income, which helps offset some of that extra tax burden. Since your income was only $2,100, you should definitely qualify (the income limits are much higher). Most tax software will calculate this automatically once you enter your Schedule C info, but it's worth double-checking that it's being applied. Also, definitely track ANY expenses related to this work - even small things like work shirts, phone usage, or gas for work trips add up. I missed out on probably $200-300 in deductions my first year because I didn't think they mattered. Every little bit helps when you're dealing with that 15.3% self-employment tax on top of regular income tax!