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How much can you make before having to report it to the IRS?
I thought there was a amount that you had to reach before having to report it.
I just started back to work and I only earned approx. $710 for the entire year.
I thought I'd ask here to just satisfy my curiosity and since I know there are some tax-smart mamas here.
I actually spent more money getting my business up and running than I made....but we don't itemize. (at least never have before) Maybe it is time for me to call a tax preparer?
We don't quality for EIC or anything like that. Just my dh's income, our deductions for our children, our decuction for our interest paid on student loans.....and that is it.
Adivce?
Michelle
__________________ "If it (salvation) is based solely on following rules, then it isn't grace via faith in Jesus Christ"
I believe it's $500 for anyone. Self-employed, children, etc. And if your husband is claiming you on his taxes, I'm pretty sure you have to list what you made. I know on our taxes, we have to list the interest the kids' bank accounts made even though it is less than $100.HTH.
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Stacy
Attached Mama to Jordan 10, Zachary 8, Damien 4, and Scarlett Pearl TWO!
Self employment itemizing is different. You use schedule C and you ALWAYS itemize for business, even when you aren't for personal. You should definitely file because your loss will carry over and help you next year.
My advice would be to get a program like Turbo Tax, it will lead you through the schedule C.
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Allison
mama to Ara, Simone, and Zarin
If your net earnings are more than $400, and/or if you perform services for a church as an employee and receive income of $108.28 or more, you must pay self-employment (SE) tax using Form 1040, Schedule SE (PDF).
If you are self-employed, a sole proprietor (someone who owns an unincorporated business by yourself), or an independent contractor, you are required to report income and expenses on Schedule C (PDF) or C-EZ (PDF) and calculate your earnings (scroll down to Figuring Earnings Subject to Self-Employment Tax) subject to SE tax. Attach the schedule to your Form 1040, U.S. Individual Income Tax Return.
I'll get on it. It would be good if I can still do our taxes. I'll also check into a local guy who does taxes in our area and see how much he'd charge. (he does the taxes of a friend who has the same job as I do)
I can for sure prove a loss this year with the equipment I had to buy. I also have a lot of mileage so far from work since I go to pick up my clients and we live in a rural area.
Thanks mamas!!!! I need to just get with it and not fear the unknown.
Equipment isn't 100% deductible in the year it is bought. Only the portion that is depreciated is deductible. Equipment is depreciated over a number of years...it is not all deducted in one year.
I'll say this -- we pay $1200 to an accountant to keep us on the up and up and he earns every penny of it. He finds every deduction, untangles the mess that is our finances and is just super terrific in every way. When we moved out of state we kept him and just mail stuff back to him. Prior to him we had another tax advisor and I'm not sure he was worth the money. He did our returns but he was sloppy and made errors that our current guy found.
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Alaska So proud of my 7th grader and 1st graders My feedback
I made the sweater, too.
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