Most of you are familiar with Uber and Lyft, both ride sharing services. OnlyFans may be less familiar, it’s a social medial platform that allows creators to share content behind a paywall.
What do these have in common? All three are considered self-employment. Meaning you will receive a 1099 Form (1099-NEC or 1099-MISC) instead of a W-2. A W-2 will have taxes taken out, a 1099 will not have taxes removed. Since these are considered self-employment, they require an additional Schedule C (Profit / Loss from Business) tax filing, and may require estimated tax payments. As self-employed (a small business) that means you can write-off certain expenses.
I work with business during the year to keep books up to date, calculate estimated tax payments, and get taxes paid at the proper time. Raleigh Accounting & Tax LLC is here for your small business needs. If you have questions about taxes, bookkeeping, business start-ups, and expenses / write-offs relating to businesses, contact us.