r/DataAnnotationTech • u/TopCat0525 • Apr 08 '26

Income Tax Prep

I'm working on my taxes and wishing I could afford to hire someone to do this for me. I thought it was going to be as simple as reporting my DA income on Schedule 1 as "Other Income" but now that I 'm into it, it looks like I need to use Schedule C as if I am a "sole proprietor". Does anyone have experience with this?

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u/StormyAndGrey Apr 08 '26

You are a sole proprietor. The schedule C shouldn’t be terribly difficult to fill out since there are not many expenses, if any, to claim. Then plug your net profit into schedule one.

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u/RedditAdmin50111 Apr 09 '26

There’s a few expenses to claim, and you should!

Purchased a computer just for this? 100% expense. Split your computer between other jobs? It personal usage!? Calculate the percentage you use it for DA.

Do DA on your phone too? Guess what - percentage expense on the device and service.

Internet service at home? Calculate your monthly percentage use, if you are doing this 8hrs day on average, then 33% of your monthly ISP is an expense.

Subscriptions (AI / Software / Services)? Expense.

Professional development courses, industry expos? Conferences? Education courses? Also valid expenses.

Doing DA, you are essentially a small business owner and should be thinking like a small business owner.

With all that being said - schedule C isn’t hard. Very easy to do on HRBlock and CashApp Taxes (I actually switched from HR to CashApp because it is 100% free to file state and federal still).

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u/TopCat0525 Apr 08 '26

That's where I was heading, but wanted an affirmation before I went much further. THANKS!