2007-08-25 15:03:33 · 6 answers · asked by aarfootm 1 in Business & Finance ➔ Taxes ➔ United States
Ok, first of all you need to go and talk to a CPA, not the Yahooligans.
Second, if you grossed $8,000, a good CPA would find multiple deductions to reduce your tax liability.
And third, the short answer is we get to pay taxes on ALL earned income. You being on social security does not make any income you earn tax exempt. If you are in business, you have to file, and potentially pay, taxes. Period.
Like I stated, go see a CPA. This is their off season and many will give you a free consultation.
Reality check. How were you paid? One company, one individual, many companies? Will the money paid to you be reported as an expense on someone else's taxes? All these things will decide if the feds can find out and come knocking for their share.
2007-08-25 16:23:39 · answer #1 · answered by Gem 7 · 0⤊ 0⤋
Whether you are single or married, the $8,000 of income is going to be free of federal income tax. In addition, your SS benefits are also still tax-free at this income level.
However, you are required to file a tax return, because the net profit from your self-employment is subject to self-employment taxes of approximately 15%, or $1,200.
Keep records of all expenses related to producing this self-employment income. You may be able to deduct these expenses and reduce your self-employment taxes. You will file schedule C with your tax return.
2007-08-25 16:26:57 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
$1,130 in self employment tax on $7,388 adjusted earnings (92.35% of $8,000) The $7,388 would be added to your lifetime earnings and increase your social security benefit next year.
2007-08-25 16:36:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Not income tax. But you would have to pay self-employment tax (for social security and medicare, even if you are already receiving them). The self-employment tax would be around $1130. Not the answer you were hoping for, I know - sorry.
2007-08-25 15:12:47 · answer #4 · answered by Judy 7 · 1⤊ 1⤋
No. You should be able to earn much more than 8,000 before any penalties with come into play. check with your local social security office, but i would say probable 25,000 can be made before any penalties and taxes would have to be paid.
2007-08-25 15:15:28 · answer #5 · answered by Anonymous · 0⤊ 2⤋
Dont worry about it...by the time they figure out you cheated them you will need the long term care offered by a Federal work camp...americas next great retirement center
2007-08-25 15:08:50 · answer #6 · answered by Anonymous · 0⤊ 6⤋