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I've been doing contract work online for a company based in Germany. So far I've made about 2,880 from Jan-June $500 a month then $480 after paypal. I don't get a 1099 from them. But I was wondering how do I pay the taxes for that?

do i put in $500 for jan-jun then 120 for tax deductions due to paypal fees?

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Whether or not you get 1099 is entirely irrelevant to your tax liability. Even though PayPal may or may not send you 1099-K (depending on the total amount you got paid through PayPal), you still have taxable income.

You write it down on your Schedule C (if you're a sole proprietor/SMLLC) line 1, and you write down your expenses on the appropriate lines on your Schedule C. The bottom line (line 31 of your Schedule C) flows to your Form 1040 for the year.

If you're in the black (profitable) and not too many expenses (less than $5000, for example), you can use Schedule C-EZ instead.

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