What is the smallest amount of money that you can earn without filing a Schedule C on your tax return?

Question

references please?

Answer 1

I used to believe that the $400 level was the correct answer too, but now I'm not so sure. This is the level indicated on Schedule SE (Self-employment Tax). However, the numbers on Schedule SE flow from Schedules C or C-EZ, or Form K-1.
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If you read the first line of the Instructions for Schedule C, it says, "Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor. Also, use Schedule C to report wages and expenses you had as a statutory employee. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. For example, a sporadic activity or a hobby does not qualify as a business. To report income from a nonbusiness activity, see the instructions for Form 1040, line 21, or Form 1040NR, line 21."
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That indicates to me that if you have, for example, repaired someone's tractor in February and July in the past year and they paid you $300 the first time, and $400 the second time, then you would report the total of $700 on Line 21 of Form 1040, and would not report it on either Schedule C or Schedule SE.

If you are earning your income with "continuity and regularity", e.g. if you lubed and changed the oil in your friend's tractor every month for $60 a month on a regular basis, then you would file Schedule C and SE (even though the amount would be similar, $720.)

Answer 2

You can make less than $400 NET to not have a filing requirement of Schedule C.

Answer 3

If it's your only income for the year, $400.00. If you have other taxable income then you must report all Schedule C income regardless of the amount unless it is under $400 and the total of the Schedule C income and your other taxable income is less than the filing requirement amount for your filing status.

Answer 4

If you are filing a return anyway, then you must report any self-employment income that you have. If you would not otherwise have to file, then you only have to file if you make $400 or more from self-employment.

Answer 5

$400.00

References?

1) My Brain
2) "bostonianinmo" is never wrong.