Do I need to claim self-emplyment income if income less than $600?

Question

I worked two days for a state university. They said that sinmce my gross was less than $600 they were not required to send me a 1099. Does this mean I do not have to pay taxes on this income?

sorry, did I mention that I only made $320.

also, I have two seperate earnings to report. do I have to report them both since the sum is greater than $400? Or just report the one that earned me more than $400?

Answer 1

If this was your ONLY income for the year and was less than $400.00, you do not need to report it. Self employment income of $400 or more must be reported and you must pay self employment taxes on the net profit if it is $400 or more.

Just because a Form 1099 isn't required does NOT mean that the money isn't taxable income!

If this was just part of your total earnings and your total was above the filing requirement ($8,450 for a Single taxpayer who is not the dependent of another taxpayer) then you must include it in your income. If it's less than $400 net profit there will be no SE tax due, but it's still includible in your gross income.

Answer 2

If that was your only form of income, you aren't required to file a return, but if you are over 25 and no one else can claim you as a dependent, you may be eligible for an EIC credit.

If you made the "self-employment" income which didn't require the payor to issue you a 1099 , you made 400.00 or more. Then you must include the income probably on a C-EZ along with your other earnings.

Depending on what type of work you did, there may be deductions against that income. Such as - if you were administrating a test, and you had to use your vehicle to go to the testing site, mileage, and your vehicle can be counted possibly.

Since that income (1099 or non-employee compensation) is not being reported to the IRS, it will have to be your conscience be your guide.

I'm sure a lot of people will thumbs down this answer, but I roll like that - Due Diligence. Honesty is the best policy.

Good Luck

Answer 3

According to the IRS, you have to report self-employment earnings of over $400. You would think that an employer would have to send a 1099-MISC for anything over $400, but $600 is the correct number.

Answer 4

They do not have claim you but YOU need to always claim any income.

If you ever get audited this piddly amount will still show up for the IRS if it was paid from a legit place. If you worked in a barn down the road for farmer Bob & were paid cash, most likely he never claimed you so that money would never be found out.

Only you can decide what to do here.... are you willing to chance the cover up ? Many MANY people are.

Good Luck !!

]: )