If you earn any wages as a self-employed individual, you may have a few questions about filing your tax return, such as how to fill out the self employed description or categories. You also might be curious about your employer ID.
When filing your individual tax return, you’re required to report any income wages you earned throughout the year. This include employee and nonemployee wages.
Employee wages are relatively straightforward. You’ll receive a W-2 that you can upload or use to complete the income section of your tax return. You may be asked to provide the employer ID, which you’ll often find in section B on your W-2 form.
If you earned self employment income, however, you’ll typically receive a 1099-NEC, or 1099-K , or 1099-MISC (or a combination of these both). These forms can be used to fill out any nonemployee income earned.
When filing online, you may be asked to categorize your self employment income. For example, if you take on freelance design work, you might categorize these expenses as “design work.” If you work different types of freelance jobs, you might want to categorize this income by the industries or skill sets, such as “design,” “content,” and “web development.”
You also may need to include the employer ID for each individual 1099-NEC you receive. You can find this number at the top left of your 1099-NEC under employer ID or payer’s TIN (Tax Identification Number). For 1099-K forms, you’ll instead provide the Filer’s TIN, which is located in the middle, at the top of the form.