You have self-employment income if you earn money by working for yourself instead of as an employee. This includes freelance work, gig work, running a small business, or selling goods or services on your own.
If taxes aren’t automatically withheld from your earnings, it’s likely considered self-employment income.
Common examples of self-employment income
Self-employment income can come from many sources, including:
Freelance or contract work
Gig work (rideshare driving, delivery apps, task platforms)
Running a small business or side business
Selling products online or in person
Consulting or professional services
You don’t need to have a registered business for income to count as self-employment income.
What tax forms report self-employment income?
Instead of a W-2, self-employed people often receive 1099 forms. Common ones include:
Form 1099-NEC — reports nonemployee compensation of $600 or more from a client or business
Form 1099-MISC — reports certain other types of income, like rent or prizes
Form 1099-K — reports payments received through third-party platforms or payment apps
You may receive multiple 1099s—or none at all.
Do I have to report income if I didn’t get a 1099?
Yes. You’re required to report all self-employment income, even if you didn’t receive a tax form.
1099s help you report income, but they don’t determine whether income is taxable. If you earned it, it generally needs to be reported.
What’s not self-employment income?
These types of income are usually not considered self-employment income:
W-2 wages from an employer
Interest or dividends from investments
Most retirement income
Social Security benefits
These are reported differently on your tax return.
What are business activity codes (NAICS codes)?
When you report self-employment income, you’ll select a business activity code, also known as a NAICS code.
This code tells the IRS what type of work you do. You should choose the code that best describes your primary business activity. Picking the right one helps ensure your income is categorized correctly.
Key takeaway
Self-employment income includes money you earn from working for yourself—whether full-time, part-time, or as a side gig. Even if you don’t receive a 1099, you’re still responsible for reporting what you earned.
Keeping good records throughout the year makes this much easier at tax time.
This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.
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