Schedule C or F? Which form for 1099-NEC commission income as HVAC tech?

So would they be able to deduct mileage driven to those referral jobs? And what about cell phone usage if they're calling customers about the cleaning service?

Yes, they could potentially deduct mileage driven specifically for these referral activities, but they would need to keep a detailed log showing dates, miles driven, and the business purpose of each trip. Standard mileage rate for 2025 can be used to calculate the deduction. For cell phone expenses, they can deduct the business portion of their phone bill. If the phone is used for both personal and business purposes, they would need to calculate what percentage is used for business and only deduct that portion. Documentation is key - keeping records of business calls related to these referrals would be very helpful if ever questioned by the IRS.

Does it work with any tax software or is it a standalone thing? I've got a similar situation with consulting fees but already started my return in TurboTax.

Sounds interesting but how is it different from just going to a tax professional? I'm always skeptical of AI tools handling something as important as taxes.

It works alongside whatever tax software you're already using. You can upload your documents to taxr.ai, get their analysis and recommendations, then apply that knowledge when filling out your return in TurboTax or whatever system you prefer. For your question about comparison to tax professionals, it's actually different in a few key ways. While tax pros are great, they're expensive and often booked solid during tax season. Taxr.ai gives you immediate answers 24/7 and costs less than a professional consultation. It's not replacing human advisors for super complex situations, but for situations like figuring out the right schedule for 1099 income, it's incredibly helpful and accurate.

How does this actually work? Seems impossible to skip the IRS phone queue when everyone's trying to get through.

Yeah right. No way this actually connects you to the IRS faster than anyone else. The IRS phone system is completely overwhelmed. How could some random service possibly get you through when nobody else can?

The service uses technology that continuously redials and navigates the IRS phone tree for you. When they finally get through to a real person, they call you and connect you directly to the agent. It's not skipping the line exactly - they're just handling the painful hold process so you don't have to waste hours with your phone stuck on speaker. It absolutely works. I was skeptical too until I tried it. Instead of spending 3+ hours on hold (which I've done many times before), I went about my day and got a call when they reached an agent. The whole point is that most people give up after waiting so long, but this service doesn't give up.

I did call them but the office manager wasn't sure. They just said their accountant told them to issue 1099s for all referral partners who got over $600. They don't care how I file it on my end, just that they reported the payment to the IRS.

That makes sense - the $600 threshold is the standard for when businesses must issue 1099s. Based on that and what others have said here, it sounds like Schedule C is definitely your answer. The cleaning company is treating you as an independent contractor for these referrals (separate from your regular HVAC employment). Remember that with Schedule C income, you're responsible for both the employer and employee portions of Social Security and Medicare taxes, which comes out to about 15.3%. That's calculated on Schedule SE. You'll want to make sure you're setting aside enough to cover this additional tax burden.

The home office deduction is super strict though. You need a space used EXCLUSIVELY for business. If you use your dining table for paperwork but also eat there, it doesn't qualify.

You're absolutely right about the exclusive use requirement. The space must be used regularly and exclusively for business purposes to qualify for the home office deduction. A dedicated desk or room that's only used for managing these referrals would qualify, but a multi-purpose space like a dining table wouldn't. It's also worth mentioning that there are two methods for calculating the home office deduction: the regular method (based on actual expenses and the percentage of your home used for business) and the simplified option (a standard deduction based on the square footage of your office space). For someone with a small amount of self-employment income like the OP, the simplified method might be easier.