Intuit Academy Tax Practice Exam 2025 – All-in-One Guide for Exam Mastery!

Question: 1 / 400

What reporting is required for freelance workers in terms of taxable income?

They need to report only their net income.

They must submit a summary of their expenses without income details.

They need to report their total income using a 1099 form.

Freelance workers, commonly categorized as self-employed individuals, are required to report their total income earned from their freelance activities. This reporting is primarily done through IRS Form 1099 when they receive more than $600 from a single client in a calendar year. The 1099 form outlines the total income received, which is essential for tax purposes since freelancers are responsible for reporting all income earned, not just net income after expenses.

In addition to reporting total income using the 1099 form, freelancers must also keep track of any allowable business expenses to accurately calculate their net income for tax filings. This comprehensive approach ensures that freelancers are in full compliance with tax regulations and can adequately prepare for tax payments on their gross income, which includes all income received from their freelance work.

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They are exempt from reporting as they are self-employed.

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