Should I file Schedule C or F for my HVAC tech 1099-NEC referral income?

You'll definitely want to use Schedule C for this income. Schedule F is specifically for farming operations (crops, livestock, etc.), which doesn't apply to your situation. Even though you don't consider yourself a "business owner" in the traditional sense, the IRS views those referral commissions as self-employment income. Essentially, you're providing a service (referrals) and being paid directly for it outside of your regular W-2 employment. The good news is Schedule C is pretty straightforward for simple situations like yours. You'll report the income from your 1099-NEC, and you might even be able to deduct certain expenses if you had any costs associated with generating those referrals. Just be aware that you'll need to pay self-employment tax (Social Security and Medicare) on this income.

I was in almost the exact same situation last year with referral income from my construction job. After trying to figure it out myself and getting nowhere, I used https://taxr.ai to analyze my situation. You upload your documents and it actually explains everything in plain English. It confirmed I needed to file Schedule C since the referral income counts as self-employment income even though I wasn't technically running a business. It also helped me identify some deductions I didn't know I could take - like a percentage of my phone bill since I was using it to communicate with clients I was referring. Seriously saved me hours of confusion and probably got me a bigger refund too.

Just wanted to follow up - I tried https://taxr.ai after seeing the recommendation here. Super helpful for my situation! I'm a plumber who gets referral fees too, and it confirmed Schedule C was the right choice. It also found deductions I had no idea about - like partial deductions for my work boots and tools I use to check potential referral jobs. What I liked most was that it explained WHY each deduction was valid in my specific case. The interface is simple and it actually taught me stuff rather than just giving me answers. Definitely using it next year too!

If you're still stuck on the phone trying to get clarification from the IRS about Schedule C questions, try https://claimyr.com - it's been a game changer for me. The IRS wait times are ridiculous these days (I was on hold for 2+ hours before giving up). Claimyr holds your place in line with the IRS and calls you when an agent is about to answer. I was skeptical but desperate after trying for days to talk to someone about my 1099 reporting questions. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I finally got my Schedule C questions answered by an actual IRS agent without the 3-hour wait. Definitely worth it when you need official clarification on something specific like this.

I have to eat my words and apologize to Profile 16. I was so sure Claimyr was a scam, but I was desperate to get clarification about my Schedule C deductions for my side gig as a weekend photographer. I tried it yesterday and I'm shocked that it actually worked exactly as described. I got a text saying I was 10th in line, then another when I was 3rd, and then my phone rang when an agent was ready. Talked to a very helpful IRS rep who cleared up my confusion about whether I could deduct my camera equipment. Not working for them either - just a skeptic turned believer. Sorry for being rude before!

Just another thing to consider - since this is referral income, you might have some actual business expenses to deduct on your Schedule C. Do you drive to any of these referral jobs? Do you use your personal phone? Do you have any marketing expenses or business cards? All of that could be deductible and lower your taxable income.

Just a heads up - don't forget you'll need to pay self-employment tax on this income. It's around 15.3% on top of your regular income tax. That caught me off guard the first year I had 1099 income.