If you earned money during the year but never received a 1099, you may wonder if you still need to report that money on your tax return. In most cases, the answer is yes. Taxable income generally still needs to be reported even when you don’t receive a 1099 or another tax form.
This is especially important for freelancers, independent contractors, gig workers, and people with side businesses.
No 1099 Doesn’t Mean the Income Doesn’t Count
A 1099 is a form used to report certain types of payments, but the form itself does not determine whether your income is taxable. You may have earned money without receiving a 1099.
For example, you could have been paid for:
- Freelance work
- Cleaning or landscaping
- Photography
- Delivery or rideshare work
- Construction or repair work
- Online services
- Selling goods or services
- Other side jobs
Even if the person or business that paid you didn’t send you a 1099, you generally still need to report taxable income.
What If I Was Paid in Cash?
Getting paid in cash does not automatically make the income tax-free. If you performed work or provided a service and someone paid you in cash, that money may still be taxable income.
The same can apply if you were paid by check, payment app, bank transfer, property, or another form of payment. This is why keeping your own records is important. You shouldn’t depend only on tax forms to determine how much money you earned during the year.
Why Didn’t I Receive a 1099?
There are several reasons you might not receive a 1099. The person or company that paid you may not have been required to send one. Your payments may not have met the applicable reporting requirements, or there could have been an error.
But whether the payer was required to send you a form is a separate issue from whether your income needs to be reported.
If you know you earned taxable income, don’t automatically leave it off your tax return just because you didn’t receive paperwork for it.
Keep Records of All the Money You Earn
Good records are especially important when you work for yourself. Keep track of payments you receive throughout the year. Depending on your business, this could include invoices, bank deposits, payment app records, receipts, checks, and your own income records.
You should also keep records of eligible business expenses. Having organized records can make it much easier to calculate your income and expenses when it’s time to prepare your tax return.
Local Tax Can Help You Report Your Income Correctly
If you earned money but didn’t receive a 1099, Local Tax can help you figure out what needs to be reported. We can review your income records, 1099s, business expenses, and other tax documents to help you prepare your return correctly.
This can be especially helpful if you have a side job, work as an independent contractor, receive cash payments, or have several different sources of income.
Don’t assume income doesn’t count simply because you didn’t receive a tax form.
Local Tax
9429 Somerset Blvd
Bellflower, CA 90706
(562) 925-2203
Contact Local Tax if you’re unsure how to report income you earned without receiving a 1099.
