I had my own online business in 2005 but stopped working on that business the same year. I had a few websites bring in a little cash in the beginning of 2006, only $257. I haven't received a W-2 for it yet. Anyway, i'm "married filing jointly" and was wondering if it is required for me to report this information, since it was such a little amount. I really want to file our tax return now because I have no idea when my W-2 (income = $257) will come in. Thanks!!
2007-02-07 03:02:48 · 7 answers · asked by Confused 1 in Business & Finance ➔ Taxes ➔ United States
If this was your on-line business you won't get a W-2 and even if it was a franchise or some type of MLM then chances are you won't get a W-2 or a 1099 (non employee compensation) because the amount is less than $600. If you filed with this business in '05 I would advise claiming the business again this year with the $257 income. Surely you had a few expenses to write off against it where you had an actual loss didn't you?
2007-02-07 03:10:13 · answer #1 · answered by hdsok 2 · 2⤊ 0⤋
You legally need to claim that income. You should file Schedule C or C-EZ and calculate the net profit on that income. There won't be any Self Employment tax since the total is less than $400.
You won't get a W2 for that money. You'll have to use your own records to complete the Schedule C or C-EZ. If you show a loss on the activity, the IRS may challenge your claim that it's a business and treat it as a hobby. That will generally disallow any business expenses other than Cost of Goods Sold.
Alternatively you could just list the amount on line 21 of Form 1040 and pay the tax on the entire amount. It's not much and won't likely be challenged by the IRS.
2007-02-07 03:11:50 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You can report it and claim it as a loss because im sure your computer and internet service cost way more than $257.
2007-02-07 03:09:01 · answer #3 · answered by jeff k 1 · 0⤊ 1⤋
You won't receive a "W2" for this but you still must report.
It, along with any expenses, technically go on Schedule C but as it is so small, you can put it on Line 21 of Form 1040.
2007-02-07 03:10:59 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
the authorities will grant you with the variety you pick to declare. it typically does no longer improve your tax payable yet you should declare it and any earnings tax withheld will be credited on your go back. in case you made earnings that is significant after amassing EI they'll require you to pay some EI reward lower back. you should declare it, b/c in case you do not they have record and could modify your go back for this reason.
2016-11-25 23:36:28 · answer #5 · answered by ? 4 · 0⤊ 0⤋
it is beeter to report any way still you are in tax preparation deals
just go through them
2007-02-10 17:13:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
No you don't have to report it.
2007-02-07 03:13:13 · answer #7 · answered by lemontwist9 2 · 0⤊ 2⤋