Self-employed persons with income of $400 or more are required to file a tax return. If you are a self-employed church employee you are required to file if income is $108.28. Does anyone know where this figure came from and why it is not rounded to $108 like most other thresholds?
2006-10-04 13:55:41 · 2 answers · asked by dgads39 1 in Business & Finance ➔ Taxes ➔ United States
108.... that's my favorite radio station!
2006-10-04 13:59:43 · answer #1 · answered by farahwonderland2005 5 · 0⤊ 0⤋
Self employment tax is on "net earnings" from self employment which is not the same as profit. The SSA web page states church employees income is subject to self employment tax at $100. 1040 Sch SE says to determine net earnings from self employment, take profit and times it by .9235 or 92.35%. If you work backwards, you need $108.28 time .9235 to end up with $100.
2015-11-11 08:49:30 · answer #2 · answered by Ellie 1 · 0⤊ 0⤋