How to Report Self-Employment Income Without 1099

If you are self-employed and earned income without receiving a Form 1099, you are still legally required to report it to the IRS. All income is taxable, whether or not you receive a tax form.

IRS Tax Code Reference

Under Internal Revenue Code (IRC) §61, gross income includes all income from any source unless excluded by law.
Self-employed income must be reported on Schedule C (Form 1040) even if no Form 1099-NEC or Form 1099-K is issued.

Relevant IRS Forms:

• Schedule C (Form 1040)  Profit or Loss from Business
• Schedule SE (Form 1040)  Self-Employment Tax
• Form 1040  U.S. Individual Income Tax Return

Reporting Self-Employment Income Without a 1099

If you did work or provided services and were paid but did not receive a Form 1099, you still must:

1. Track the total amount received.
2. Report the gross income on Schedule C.
3. Deduct allowable business expenses to calculate net profit.
4. Calculate self-employment tax using Schedule SE.

Example:

Scenario:

• A freelance designer earns $15,000 from multiple small clients, none issuing a Form 1099.

Reporting:

• Report total income of $15,000 on Schedule C as gross receipts.
• Deduct any business expenses (like software, marketing, etc.) to determine net earnings.
• Pay self-employment tax and income tax accordingly.

Step-by-Step Compliance Checklist

1. Keep detailed records of all payments received invoices, bank deposits, PayPal transfers, etc.
2. Enter gross receipts on Schedule C (Form 1040).
3. Deduct eligible business expenses (rent, supplies, mileage, etc.).
4. Complete Schedule SE to determine and report self-employment tax.
5. File all forms accurately with your Form 1040 by the filing deadline.

Important Points to Remember

• The IRS uses Form 1099-K to track third-party payments (e.g., PayPal, Venmo, Cash App) if thresholds are met, but you must report all income even if you don’t receive one.
• Payments under $600 still must be reported  the $600 rule is only about whether the payer issues a 1099, not whether income is taxable.
• Failure to report all income can trigger penalties, interest, and audits.

Conclusion

Even if you don’t receive a Form 1099, you are legally obligated to report all self-employment income to the IRS. Proper recordkeeping and accurate filing are essential to staying compliant and avoiding costly penalties.

A CPA can help you file correctly and ensure you claim all eligible deductions.

Schedule a meeting with Anshul Goyal, CPA to properly report your self-employment income and optimize your tax outcome for 2025:
https://calendly.com/anshulcpa/

FAQs

Q1: What if I only made $300 and didn’t get a 1099?
You still must report all self-employment income, even if it’s under $400.

Q2: Can I estimate my self-employment income if I don’t have records?
You should make a good-faith estimate, but keeping actual records is strongly recommended.

Q3: Is income from Cash App or Venmo taxable?
Yes, if it is business-related income.

Q4: Can I still deduct expenses without a 1099?
Yes, as long as they are ordinary and necessary business expenses.

Q5: Will the IRS know if I don’t report income without a 1099?
Possibly. IRS data matching and audits are increasingly sophisticated, even without a 1099.

About Our CPA

Anshul Goyal, CPA, EA, FCA, is a licensed Certified Public Accountant in the United States. As an Enrolled Agent, he is authorized to represent taxpayers before the IRS. Anshul specializes in self-employed tax strategies, compliance reporting, and helping freelancers and entrepreneurs stay audit-proof.