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Forum
-> Working Women
-> Work at Home Mothers
tigerwife
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Mon, Mar 24 2014, 8:22 am
I need some clarification on this.
Anyone know if there is a significant amount of money that needs to be earned in order to report profits?
I have this vague memory of not needing to report money I earned from writing a few articles since the total profit was under $500 or $600. I did some freelance writing and design last year and I'm pretty sure I earned less than that amount. I don't have a business tax ID and was paid either by cash or check in my name.
Anyone familiar with this? Thanks.
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TwinsMommy
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Mon, Mar 24 2014, 8:49 am
Report any amount on sch c. You may have expenses to offset the income but it does need to be reported.
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STovah
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Mon, Mar 24 2014, 9:01 am
They did not need to issue a 1099 to you since they paid you less than $600 (I think that's the limit these days) but you need to report it on sch C as TwinsM replied above.
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tigerwife
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Mon, Mar 24 2014, 9:19 am
Thanks for the replies.
So does this mean they will take off tax?
Also, can I mark off business expenses if I don't have an official tax ID?
I appreciate the responses; I am shamefully ignorant in this area... Call me worst businesswoman ever...
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STovah
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Mon, Mar 24 2014, 9:39 am
tigerwife wrote: | Thanks for the replies.
So does this mean they will take off tax?
Also, can I mark off business expenses if I don't have an official tax ID?
I appreciate the responses; I am shamefully ignorant in this area... Call me worst businesswoman ever... |
I don't understand what you mean by whether they will take off tax - the people who paid you already paid you, and if they haven't yet, they won't be taking off tax.
You can mark off business expenses if you don't have a tax id. Just fill out the schedule c with your name and ssn.
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tigerwife
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Mon, Mar 24 2014, 9:54 am
Thanks, I think I got it now.
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TwinsMommy
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Mon, Mar 24 2014, 11:28 am
you actually pay MORE in taxes from sch. C income (whether you're 1099'ed or not) than you do from w-2 income because you pay the emploYER and emploYEE parts of certain taxes. But for an income of $500 or so, and you probably have some expenses to offset it, it won't affect you much. It's just good to know (I have multiple schedule C's as I'm self employed in a few different arenas).
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