@Flash wrote:
@ceasesmith wrote:
And remember, the threshold for filing for self-employed is net of $600 (IIRC); you have to file and pay SE taxes if you NET over $600.
I am not finding an IRS reference with that information. Can you provide a link?
Edited to add that I understand you pay SE taxes if you NET over $600 but that has nothing to do with the requirement to file self employment activity.
You mean there's a way to pay SE taxes and notify the IRS that's what you're paying without filing an actual tax return?
And, of course, you SHOULD file even if you net less than $600. You just don't have to pay any SE taxes on the first $600 SE income.
And I stand corrected. It's only $400. From IRS.gov website:
"You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 instructions (PDF)."
Also, note SE tax is in ADDITION to income tax; it's not income tax. It's social security/FICA and all that good stuff.
Edited 1 time(s). Last edit at 01/01/2016 02:12AM by ceasesmith.