Do I need to report $950 I earned and got paid through Zelle as a 1099?

I worked for about a month and a half and made $950 during that time. They sent me the money using Zelle. They fired me about 8 months ago, but now they’re asking me to fill out a W-4 so they can send me a 1099 form.

I’ve never dealt with this before and could use some advice. Do I have to send them the W-4? And do I need to report this income when I file my taxes? I also have a full-time job where I’ll be getting a W-2.

A W-4 is for wage income, and if they were going to send you a W-2, they’d already have that info. A W-9 is what you’d give them if they plan to issue you a 1099-NEC for non-wage income.

You’re required to report all income, even if you don’t get a tax form. If you earned $950 total and no one gave you a 1099 because they didn’t pay you over $600, you still need to report it, usually on a Schedule C.

@Taylor
Thanks for breaking that down for me. I’ll make sure to report the income no matter what.

If they’re asking for a W-4, they’re confused. A W-4 is used when they’re planning to issue a W-2, not a 1099. If it’s a 1099, they should be asking for a W-9.

Either way, you’re legally required to provide your Social Security Number when it’s needed for tax forms. And yes, you need to report this income, whether it’s on a W-2 or a 1099. If you get a 1099, you’ll also have to file self-employment taxes because the income is over $400.

@Dru
Thanks for explaining. They specifically asked for a W-4 so they can send the 1099, which didn’t sound right to me. I’ll check with them to clear things up.

True said:
@Dru
Thanks for explaining. They specifically asked for a W-4 so they can send the 1099, which didn’t sound right to me. I’ll check with them to clear things up.

Yeah, sounds like they don’t really know what they’re doing. They should’ve handled this before you started working for them.

True said:
@Dru
Thanks for explaining. They specifically asked for a W-4 so they can send the 1099, which didn’t sound right to me. I’ll check with them to clear things up.

They might just need your Social Security Number and don’t realize a W-9 is what they actually need. If you give them a W-9, it should solve the problem.

If it’s wages, you give them a W-4. If it’s non-wage compensation, you give them a W-9. They seem a bit mixed up.