last summer i worked a job for a private summer school. i was paid $2200.
i e-mailed the person who runs it, and they said that no 1099 was produced by their bookkeeper and that that means they didn't report it.
do i have to claim it? how so?
thanks in advance : )
2007-03-28 11:57:10 · 6 answers · asked by Bret G 2 in Business & Finance ➔ Taxes ➔ United States
Yes, you have to claim it. File Form 1040. Attach Schedule C or C-EZ to account for the income and any business expenses. If the net profit is $400 or more, attach Schedule SE to calculate the self-employment tax.
The $8,450 mentioned by the above poster is for wages from employment. If you have $400 or more in self-employment income (you do) then you must file even with your minimal amount of income.
2007-03-28 12:01:32 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
This is a sticky one. You, in essence were an independent contractor--a sole proprietor running your own business and the school was your client. In this case you would file a schedule C listing the income you made and deducting any expenses required to earn that income. I suggest you at least look at a schedule C (irs.gov). Or, depending on how afraid of the IRS you are. . . Usually for small amounts like this the IRS would send you a letter asking for payment. I doubt they would hang you by the thumbs. The school was kind of stupid for not reporting it because it would have been deductible to them as a business expense unless they are a religious organization and don't pay any taxes.
2007-03-28 12:12:17 · answer #2 · answered by Anonymous · 0⤊ 1⤋
The IRS sets a minimum income level that must be met before a person or persons have to file. As you might guess, the minimums are pretty low. Following are the earning limits for 2006.
Let’s assume you are filing with a singe status. If you are under the age of 65, you do not need to file a tax return if your earnings were less than $8,450 in 2006.
2007-03-28 12:01:21 · answer #3 · answered by csucdartgirl 7 · 0⤊ 2⤋
The IRS say you have to claim all income from what ever sourse. You would have to claim it you don't want that kind of trouble with the IRS.
2007-03-28 12:04:05 · answer #4 · answered by thesideboardshop.com 2 · 0⤊ 0⤋
Yes you are legally required to claim it. File a schedule C or C-EZ.
2007-03-28 12:06:05 · answer #5 · answered by Judy 7 · 1⤊ 0⤋
I would report it!! Better to be safe than sorry.
2007-03-28 12:01:49 · answer #6 · answered by bpl 5 · 0⤊ 0⤋