I teach yoga from time to time. I received Forms 1099-MISC and last year earned a total of $4400 in 3 different states. Because it is non-employee compensation do I have to file as a business? I do not have any inventory or expenses for this service and do not do it all of the time. Can I just claim it as Other Income and avoid all that business stuff?
2007-02-27 07:00:13 · 4 answers · asked by Ann54 1 in Business & Finance ➔ Taxes ➔ United States
Nope, you are Self Employed by definition.
You must file Schedule C or C-EZ to account for the business income and expenses. You must also file Schedule SE to calculate the SE tax which is assessed at 15.3% of the net profit from the SE activity.
2007-02-27 07:07:25 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
I think you have a business. You must have expenses....where were the classes held? Do you own these premises, or do you buy anything for your students to use? You have clothing expenses for the clothing you wear while teaching, don't you? Do you use music for any of the class? Do you have to pay for your teaching room? How about travel expenses, since you mention different states?
If you do it for free, without any compensation to you, it is a charitable expense. So, do you charge money for your teaching, or is it a charitable expense.?Once you reach a certain amount of income from ANYTHING, it becomes a business. Just really go over what you buy for yoga. All those things are expenses. Do you eat when you go to these out of state, or out of locality, sessions to teach? Have you taken any course work, or gone to classes yourself that did cost you money? Do you use tapes or CD's for any of this? Don't forget the machine these run on! Those are all your deductions, unless you list your home as the place you teach. Then, part of your home, or rental, becomes an expense. Hope this helps
2007-02-27 15:13:26 · answer #2 · answered by laurel g 6 · 0⤊ 1⤋
By definition it's a business, whether you do it all the time or not. You'll file a schedule C or C-EZ, and a schedule SE to calculate your self-employment tax. The numbers from the bottom of both schedules will transfer to your 1040.
2007-02-27 22:29:09 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Yes, you can. Just file it under misc. income and you will be fine.
2007-02-27 15:04:58 · answer #4 · answered by ? 7 · 0⤊ 3⤋