Question

Samuel, an independent contractor, worked as a handyman during 2022. He earned $16,500 from his services, but he did not receive a Form 1099-NEC, Nonemployee Compensation. How does he report this income?

Answer 1

Since Samuel did not receive a Form 1099-NEC, Nonemployee Compensation, from his client, he is responsible for reporting his income on his own.

How does Samuel, an independent contractor, report this income?

Samuel can do this by filing Form Schedule C, Profit or Loss from Business, with his Form 1040, U.S. Individual Income Tax Return.

On Schedule C, Samuel will report his gross income of $16,500. He will also be able to deduct any expenses he incurred while working as a handyman, such as the cost of tools, materials, and travel. This will reduce his taxable income and his tax liability.