do I have to pay tax? on $8,000.00?

Question

contracted a job, made $8,000.00. do I have to pay taxes on it? it was a one time deal. Am RETIRED, on SS & MARRIED. ( I don't work anywhere)

Answer 1

The really short answer is Yes. You have incurred self-employment income which will need to be reported on Schedule C. You will also need to complete Schedule SE for the self-employment tax. You will be able to deduct the expenses related to the job on Schedule C and one-half the self-employment can be deducted on the first page of your 1040. Once you've taken the appropriate deductions and entered the amount on Schedule C on your 1040 then you can determine your total tax liability just like you always would. With the standard deductions and exemptions for a joint filer you may owe very little income tax outside of self-employment. You will need the rest of your income information to get a final number. The self-employment tax will be 15.3% of the amount you netted on the $8000.

Answer 2

You keep asking this question, and I know you wish that the answer was different, but you DO owe at least self-employment tax on this amount. As said before, if you have any allowable expenses for earning the $8000, you can subtract that from the total and only pay tax on the net. This will come to a little over $1100 unless you have substantial expenses to subtract from the $8000.

If this is your only income for the year other than social security, you won't owe any federal income tax on it. If you and your wife have other income also, like maybe a pension, then you might or might not owe income tax on it, depending on the total.

Depending on where you live, there might be state and/or local income taxes due on the $8000.

Answer 3

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.

Answer 4

* You have made $8,000 as contractor, so it is self-employment earnings. It is to be reported on schedule C. You can deduct expenses involved on schedule C. Your self-employment income is $8,000 minus your expenses.

* On your self-employment income you need to pay employment taxes @15.3%.

* Then your adjusted gross income for Federal tax is your self-employment income minus half of the employment taxes. Then after deducting your standard deduction and exemption deduction, you have your net taxable. In your case you won't have any taxable income.

Answer 5

The answer has not changed since you asked it before.