Hi,
I had a very unsucessful career as an (indenpendent contractor) online transcriptionist. In the 2 months I did this I only made $60. Actually, after the supplies I purchased for this job I'm in the hole -$10. My question is, do I need to deal with this on my tax return? I plan on asking my accountant, but I wanted to get an idea of what to expect.
Thank you!
2007-01-19 23:18:14 · 3 answers · asked by CatTech 3 in Business & Finance ➔ Taxes ➔ Other - Taxes
If you're in the hole, it might be better if you *do*claim it on your taxes as it would reduce your total taxable wages. And if your gross income before expenses was at least $600 you might get a 1099 and then you'd have to report it anyway. You'd be surprised at what a difference a small amount of money can make. It could determine whether or not you're eligible for the Earned Income Credit.
2007-01-20 01:31:48 · answer #1 · answered by datette 3 · 0⤊ 0⤋
Technically, you should put the income and expenses on a Schedule C with your 1040 but, for that small of amount it probably isn't going to make much of a difference. Off the record, you can probably ignore it.
2007-01-20 01:09:39 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
You don't have to file taxes for any source of income that is under $400. In fact, it may have gone up to $1,000. So from what you're saying, you don't have to file.
2007-01-20 05:33:54 · answer #3 · answered by Anonymous · 0⤊ 0⤋