Is there a certain point when you need to report earnings and pay taxes?

Question

Do you have to make a certain amount of money? How much?

Answer 1

Depends on what type of income you are talking about. If you are talking about self-employment income, the IRS would get a 1099 for someone if they received over $600. The IRS would be expecting a tax return for that person. If you made a net profit for self-employment income of more than $400, you would have a tax liability for self-employment tax, and would have to file a tax return, and pay the tax. If you are talking about regular income, there are different threshholds for calculating taxable income depending on filing status, deductions, age, dependents.

I've included a link to filing thresholds.

Answer 2

If you are already filing a return for some reason, then you have to report earnings from the first dollar.

Otherwise, if the income is from self-employment, it must be reported if it's $400 or more.

If it's from a job as an employee, where they took out social security, then there are different limits depending on personal situations, but the limit is at least $5350 if you are a dependent, $8750 if you aren't, except for someone filing as married filing separately, then it's a little lower.

Answer 3

I really hate the IRS and the income tax and that’s why I am pushing for the FairTax Act that will remove all income taxes.

Until that happens, you should file a tax return every year. You may not have enough income to actually have to pay a tax, but you should at least file. You could qualify for the “earned income tax credit” which is not really earned, nor a credit. That’s another story.

Answer 4

$600 per year is the reporting threshold.

Answer 5

Once you get a job and or become a legal adult.