If payment for services you provided is listed on Form 1099-NEC, Nonemployee Compensation, the payer is treating you as self-employed, also referred to as an independent contractor.

• You don't necessarily have to have a business for payments for your services to be reported on Form 1099-NEC. You may simply perform services as a nonemployee.
• The payer has determined that an employer-employee relationship doesn't exist in your case.

If you weren't an employee of the payer, where you report the income depends on whether your activity is a trade or business. You're in a self-employed trade or business if your primary purpose is to make a profit and your activity is regular and continuous.

• If you're in a self-employed trade or business, you must include payments for your services on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship). If you're self-employed, you'll also need to complete Schedule SE (Form 1040), Self-Employment Tax and pay self-employment tax on your net earnings from self-employment of $400 or more.
• There's no withholding of tax from self-employment income. As a self-employed individual, you may need to make estimated tax payments during the year to cover your tax liabilities. Refer to Form 1040-ES, Estimated Tax for Individuals for more details on who must pay estimated tax.
• If you're not an employee of the payer, and you're not self-employed but still engaged in an activity that generates income (a sporadic activity, a not-for-profit activity, or a hobby), you should report such nonbusiness income on line 8j of Schedule 1 (Form 1040), Additional Income and Adjustments to Income PDF even if you did not expect to make a profit.

If you believe you may be an employee of the payer, see Publication 1779, Independent Contractor or Employee PDF for an explanation of the difference between an independent contractor and an employee. For more information on employer-employee relationships, refer to Chapter 2 of Publication 15 (Circular E), Employer's Tax Guide, Chapter 2 of Publication 15-A, Employer's Supplemental Tax Guide, Independent Contractor (Self-Employed) or Employee? and Tax Topic 762, Independent contractor vs. employee.

As a newspaper carrier, your son may be a direct seller liable to pay self-employment tax. A direct seller is someone who satisfies the following conditions:

• The person is engaged in the trade or business of delivering or distributing newspapers or shopping news, including directly-related services such as soliciting customers and collecting receipts;
• Substantially all of the pay for these services (whether or not paid in cash) directly relates to sales or other output rather than to the number of hours worked; and
• The person performs these services under a written contract that states that the person won't be treated as an employee for federal tax purposes.
• Self-employed persons, including direct sellers, report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship). Use Schedule SE (Form 1040), Self-Employment Tax if the net earnings from self-employment are $400 or more. If your son isn't a direct seller (i.e., he doesn't satisfy the conditions above) and is engaged in a trade or business (i.e., is an independent contractor), he may still report income on Schedule C (Form 1040) and be liable to pay self-employment tax.

If your son isn't a direct seller and isn't engaged in a trade or business, but is 18 or older, he may be an employee whose wages are subject to income tax withholding, and Social Security and Medicare taxes.

If your son isn’t a direct seller, isn’t engaged in a trade or business, and is under 18 years of age, he may be considered an employee whose wages are not subject to Social Security and Medicare taxes. If his income exceeds a threshold amount to file, he must report it as wages on Form 1040, U.S. Individual Income Tax Return.

For more information on the rules that apply to direct sellers and newspaper carriers and distributors, see Publication 334, Tax Guide for Small Business. For an explanation of the difference between an independent contractor and an employee, see Publication 1779, Independent Contractor or Employee PDF and Tax Topic 762, Independent contractor vs. employee.

• Independent contractors generally report their income on Schedule C (Form 1040), Profit or Loss from Business (Sole Proprietorship).
• Also file Schedule SE (Form 1040), Self-Employment Tax if your net earnings from self-employment are $400 or more. This form allows you to figure Social Security and Medicare tax due on your self-employment income.
• You may need to make estimated tax payments. Refer to Form 1040-ES, Estimated Tax for Individuals for more details on who must pay estimated tax. If you need to make estimated tax payments and don't pay them timely, you may be subject to a penalty. Refer to the Instructions for Form 2210, Underpayment of Estimated Tax by Individuals, Estates & Trusts for more information.

Your income doesn’t need to be reported quarterly; however, you may need to make quarterly estimated tax payments. For information on estimated tax payments, refer to Form 1040-ES, Estimated Tax for Individuals.

Note: You may also have state and local requirements for estimated tax payments. For state information, refer to our State government websites page.

Yes, Segal AmeriCorps Education Awards are taxable in the year they're paid. If you receive an award and the payment was $600 or more during the year, you should receive a Form 1099-MISC, Miscellaneous Information. The Form 1099-MISC will show the amount of the award in box 3, Other Income. There is no withholding on this payment unless you failed to provide your taxpayer identification number. Report the payment amount on line 8i (Prizes and awards) of Schedule 1 (Form 1040) PDF and attach to Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors, even if you don't receive Form 1099-MISC.

Alaska Permanent Fund Dividends and Resource Rebate payments are taxable to either an adult or a child recipient and, if required to file, must be reported on a federal income tax return. Check Do I need to file a tax return? to see if you or your child are required to file a tax return. Include these amounts on line 8g of Schedule 1 (Form 1040) PDF and attach to Form 1040 or Form 1040-SR or if electing to report your child’s dividend on your return, see the Instructions for Form 8814, Parents’ Election to Report Child’s Interest and Dividends. Refer to State of Alaska: Department of Revenue - Permanent Fund Dividend for more information.