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-wanted to add more details-
I'm employed in the US and expect to receive a W2 for my main job.
I did some outside contract work for a firm in the UK. Under 3K. How do I report this? The guy who hired me in the UK, said they do not have 1099 forms, the contractor is responsible for reporting their income...
Mainly I'm asking: Do I report myself? If so, what form? If he needs to do something, what? and how can I help him get that info?
For your UK income - are you paid as an employee or as a independent contractor?
Did you perform the work for your UK income - in UK or in US?
Did you had any expenses - in connection with your UK contract?
- I was paid as an independent contractor
- I performed the work in the US and was paid in US Dollars
- No. Mainly digital IP work.
Based on information provided - the income you referred is considered as self-employment income.
It should be reported on the schedule C or schedule C-EZ
You may deduct qualified expenses and only net income will be taxable.
Net income will be also a subject of self-employment taxes - reportable on the schedule SE
Please let me know if you need more details or need references to forms.
Just to confirm, it is then correct that I need to fill out all the forms and do not need anything from the UK firm?
You say C or C-EZ. What is the difference?
Where do I get access to the appropriate forms?
Yes - that is correct - because the job was performed in the US - it doesn't matter if it was paid from US or UK sources.
To report self-employment income - you do not need to have 1099 forms and these forms are not sent to the IRS with tax returns.
Here are forms
-- schedule C - http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
-- schedule C-EZ - http://www.irs.gov/pub/irs-pdf/f1040sce.pdf
the last one is a simple form - you may use this form if you met some requirements - see a list on the form. Because you will have a minimal expenses - you likely could use simple form.
You likely may consider following expenses: phone call expenses, computer use, any software or internet access expenses, etc - you need prorate these expenses for business use and deduct only that part.