Yes, and if you earned $600 or more it should be reported. If you received any 1099 form(s) you need to file because those will be provided to the IRS by the issuer.

NOTE: You can include expenses you incurred in running your business that can offset your income. See here for more about what to track and how to maintain those records.

If you expect a refund, it is to your advantage to file as soon as possible  to reclaim your money. Your refund may be reduced by the failure to file on time penalty.

If you expect you will owe, you should file as soon as possible to avoid the penalties, as there is a failure to file on time penalty AND a failure to pay on time penalty. In addition, the IRS will add interest to your liability for the extent of time it was outstanding.

If you filed through Sage & Savvy Taxes, you can track your refund through your portal or you can do so directly from the IRS website (​​https://www.irs.gov/wheres-my-refund).

A W-2 form is the most common type of form for employers to use to report employee income for annual  tax purposes (both for them and for the employees). The W-2 form is issued when the employer has hired the worker as an employee. Employee paychecks (or pay-stubs) should  include a breakdown of taxes that were withheld and other monetary benefits (health plan payments, retirement plans, etc.).

A 1099 form (such as the 1099-NEC, which is non-employee compensation) is issued for work that was done by someone not considered an employee. Contract workers are one category of people who are issued these, but they may also be issued to small businesses or solopreneurs that provide services in excess of $600.

NOTE about 1099 work - many workers are surprised to receive these forms when they thought they were just working “for cash” or they did not understand that payment for work is considered “earned income” and therefore subject to taxation rules. Best practice is to recognize work others pay for is “work” and you can keep track of that work and the expenses you incur through the performing of that work.

An employee goes through a hiring process to become a worker for the company. They fill out paperwork to prove they are eligible to work in the US and now have worker’s rights as an employee (know your benefits!) and the employer agrees to certain roles and responsibilities as well, such as documented pay rate and agrees to assist the employee with reporting their earnings and tax withholding to the IRS and state or local tax authorities.

A contract worker is their own employer and employee at the same time. They agree to manage their own tax obligations either during the year (via estimated tax payments) or at tax time. While contract work is certainly convenient, it is important to know what you are undertaking when you take on this kind of work. See my “small business” section for additional information and resources.