12/31/2025
📌 TAX TIP WEDNESDAY 📌
It’s D. Roker here — your favorite Tax pro making taxes simple and stress-free 💁🏽♀️💼
Today we’re breaking down the difference between Self-Employment Income, 1099-MISC, 1099-NEC, and Side Hustle Income — because YES… it all matters when filing taxes 👀
💡 Self-Employment Income:
If you operate a business, provide services, or work for yourself — you’re considered self-employed.
➡️ Reported on Schedule C
➡️ Subject to income tax + self-employment tax
💡 1099-NEC (Non-Employee Compensation):
This form is for income earned as an independent contractor, freelancer, gig worker or service provider (Uber, content creators, glam artists, coaches, etc.)
➡️ If you earned $600 or more, the payer must issue a 1099-NEC
➡️ Report on Schedule C
💡 1099-MISC:
Used for miscellaneous income such as:
✔️ Rent
✔️ Royalties
✔️ Prizes or awards
✔️ Other non-service income
➡️ Depending on the type, it may go on Schedule C or Schedule E
💡 Side Hustle Income:
Even if you didn’t receive a form, the income is STILL taxable. Cash App, Venmo, Zelle, PayPal, Shopify, beauty services, reselling — must be reported.
Not reporting = 🚩 IRS penalties, back taxes & possible audits.
✨ Pro Tip:
Track every business-related expense — mileage, supplies, software, marketing, equipment, shipping, etc.
➡️ Good tracking = lower taxable income.
📚 Filing correctly the FIRST time saves stress, money, and problems later.
Ready for a smooth and compliant tax season? Let’s get you set up right ✔️
