What's the difference between self-employment income and other income? (2024)

There are some major differences between them.

Self-employment income:

• Money you earn as a contractor, consultant, freelancer, or other independent worker.
• It's reported on 1099-NEC (Box 1), 1099-K (Box 1a), or as cash, check or credit card sales transactions.
• Requires you to complete Schedule C.
• You can deduct expense related to the income.
• Requires you to pay self-employment tax.

Other income:

• Money you received from something like a prize, award, lawsuit settlement, etc.
• It's most often on a 1099-MISC (Box 3).
• You report it on Line 8 of Schedule 1 of the Form 1040.

You must sign in to vote, reply, or post