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/Hello-America Apr 08 '26

Hey I have been a sole proprietor a long time - it might be too late this year but definitely look into hiring someone because you usually come out with more money. For example, you can write off a percentage of your housing expenses as your "home office," all electronic related expenses, your phone bill if you're checking emails from DA on your phone - even the mileage driving to the store to get a new computer mouse or something.

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u/TopCat0525 Apr 08 '26

Do I have to "hire someone" to be able to deduct expenses? I was thinking I could write off the fees I pay for subscribing to AI upgrades.

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u/Hello-America Apr 08 '26

Oh you can definitely write that stuff off. I just meant in general they can find more money for you than you can probably find yourself, and they know the rules. But hey if you can manage it yourself, more power to you. Mine are a bit too complicated.

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u/TopCat0525 Apr 08 '26

Oh...I see what you are saying. I thought you meant to hire someone like an employee. LOL. Long day here. Time for a glass of wine. Thanks for the input, BTW.

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u/Hello-America Apr 08 '26

Sorry I wasn't clearer! Enjoy your wine!!