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Asked by: fgr8out
The IRS website says that I do not pay taxes on self-employment income under $ 400 but do I still have to report it to them?
rtfm on Jan 29, 2013
Not if that’s the only money you earned all year.
If you had regular income in addition to the self-employment income, you must report all the self-employment income, even if it’s only a few dollars.
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CoreyBryant on Jan 29, 2013
You might want to look at a 1040-EZ – but usually if you make under $ 699 (I think) you don’t have to. But don’t forget state taxes also.
Pascal the Gambler on Jan 29, 2013
If you have any other income, yes. If it is your only income, no.
Fabulous on Jan 29, 2013
No, but I still file that way you have a copy of it on file.
Last year I earned only $ 198, paid no federal taxes on it. Since I qualified for the Earned Income, I got a refund of $ 13.
Ray on Jan 29, 2013
My understanding is… If under $ 500 its is not a requirement to report it.
Bash Limpbutt's Oozing Cyst© on Jan 29, 2013
If your gross self-employment income before any business expense deductions is less than $ 400 and it is your ONLY income for the year, you don’t need to file a return. If your gross is higher than $ 400 but the net is less, you still must file a return and show it but you won’t owe any taxes on it.
If you are already required to file a return you must report every dollar of self-employment. If the net is less than $ 400 you won’t owe any self-employment tax but you will owe income tax on it.
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