I am disabled and recieves disability income. I write content for a pay to blog site, made just over $600 for the entire year. Since I made over 600, I had to fill out a form and they sent me a 1099- miscalaneous. Everyone says I have to report to IRS. The money was nice to get, but I really consider this a hobby. Do I need to file? Will I be in trouble for not reporting the $55 a month to Sociall Security? If I can file, can I claim the EIC credit since the money was non-employee compensation?
Thanks for the help.
2007-01-27 06:59:32 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Hobby income is not subject to self-employment tax. Therefore, you will not get Earned Income Credit for this money, and you are not required to file a tax return.
But, I think it might be a good idea to file this return, noting that it is hobby income, so that the IRS doesn't come after you for an explanation, since earnings from self-employment in excess of $400 require a filed return.
Use Form 1040, and fill in Line 21 as "Hobby writing" and put in the $600, not subject to self-employment tax.
You will not owe any tax on this money, because of your standard deduction. While you are at it, fill in Line 71 and get yourself the refund of the telephone excise tax.
If SSI requires you to report it, you need to do it. But you are under the $85/month limit so there shouldn't be a reduction in your benefits.
2007-01-27 13:11:33 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
Well, I know a little about this. First off, if you got a 1099, the IRS and SS consider it income. So you will have to file income tax. Second, with SS disability, you are allowed to make a certain amount before SS wants a percentage of their money back. So I would check to find out what the exact amount is, but for $600. I think you're ok, no paybacks and legal, but YOU have to make a phone call, do some research and find out. I believe you would be still entitled to the EIC, since, like I said, any 1099 is reported to the government as income. They don't care HOW you made it, just that's it's income, in their eyes.
Some advice..whether or not you actually KNOW the answers or not does not change the reality and your obligation. I say this in reference to all things in life. It is what it is. Ignoring or pretending you have knowlege won't do you any good.
good luck
2007-01-27 07:15:50 · answer #2 · answered by N0_white_flag 5 · 1⤊ 0⤋
Must be legal if they are getting SSI right? Sounds like you may be a bit prejudice? If you dont have a disabilty that is in the catergories listed in SSI then you dont qualify. Why worry about what Joe Smoe has? If you dont have a disabilty that prevents you from working then you need to get a job and stop trying to claim you cant work. There are people in Wheel Chairs that work? Stop trying to convince SSI that you cant work its not gonna work they are not stupid people and they have to obey their regulations and only provide care for those who can not work? Thats the bottom line. Sorry if the truth hurts.
2016-05-24 05:58:10 · answer #3 · answered by Andra 4 · 0⤊ 0⤋
It would appear that this is earned income which generally is reportable. It probably is subject to the Self Employment tax at 15.3% even if there is no income tax liability since you had self employment income of more than $400.00. The SE tax on $600.00 would only be $61.20. You might be eligibel for the EITC if you otherwise meet the qualifications for it. If you are, it would offset the SE tax at least in part so it's worth looking in to.
2007-01-27 07:12:33 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
I am disabled and had $5000 of 1099 income, last year I got a check for a refund from earned income credit ... how i claim on 2014 taxes
2015-10-15 05:46:22 · answer #5 · answered by bunner 1 · 0⤊ 0⤋