I'm an amateur photographer, and am thinking about submitting some of my pictures to stock photo sites. There's a small amount you get paid if your pictures are uploaded (some are 20%, some are 25 cents, etc). I really don't anticipate making very much, maybe a few hundred per year at the very, extreme most. I was wondering if I would have to report this on my taxes as income - even if it's only $100-$200/year. Is there a limit, or is it just all income, no matter how much/little?
2007-03-11 17:47:34 · 6 answers · asked by SeattleGirl 2 in Business & Finance ➔ Taxes ➔ United States
I work on top of this and make about $6,000/year (I'm a student, and I do report this income btw), if that matters
2007-03-11 18:19:08 · update #1
From your description, this sounds like a hobby. Hobby income is reported on Line 21 "Other Income". Hobby expenses are deducted on Schedule A subject to 2% of your AGI. So in most cases, the hobby income just goes on Line 21 and you can't deduct expenses. It is not subject to self-employment taxes, and you don't have to do a Schedule C. You cannot take a loss on hobby income.
If you are otherwise not required to file a tax return, and the hobby income is less than your filing requirement, then no tax return is required.
If you considered this a business, then you have to pay SS and Medicare, file a Schedule C, and would be required to file a return with as little as $400 income. From your question, it seems the better way to go is to treat this activity as a hobby.
2007-03-11 17:54:18 · answer #1 · answered by ninasgramma 7 · 4⤊ 1⤋
YES! Technically that includes the $10 you found in on the sidewalk last week. People don't declare that but they are suppose to.
Did you know that money from "embezzlement" is mentioned in the tax code as income that is supposed to be reported to the IRS? I'm not kidding!
2007-03-12 01:33:00 · answer #2 · answered by ? 4 · 0⤊ 0⤋
The responder who said that income sounded like a hobby was correct, and was also right in the instructions on how to report it.
If you're a dependent of anyone and made over $5150 in 2006, then yes, you have to file. If you're not a dependent, the limit to have to file is $8450.
2007-03-12 01:27:22 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
All of what you are describing is fully taxable. As a single taxpayer, if your income exceeds $8,450 (2006) you must file and probably will have a tax liability.
To answer the question in your heading, see IRS Pub 525, Taxable and Non-Taxable Income.
2007-03-12 05:05:40 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Actually, if you're self-employed (as this would be considered), you need to report any income over $400.
See the link to the IRS: http://www.irs.gov/businesses/small/article/0,,id=115043,00.html
2007-03-12 00:56:29 · answer #5 · answered by ISOintelligentlife 4 · 2⤊ 0⤋
Yes, it is!
2007-03-12 00:50:37 · answer #6 · answered by Anonymous · 1⤊ 2⤋