Tax season and work at home jobs?

Question

Just curious to see if any one knows: If you get a work at home job, or online job, does it get reported on your taxes? I know it might count as another job, but will the government charge you more taxes (you will owe them money, instead of getting any back) for that type of job?

Answer 1

Earned income is taxes at the same rate whether it is from a job or self employment.

The main difference is the Self employed have no taxes withheld from their pay and are usually subject to estimated taxes and the self employed pay both halfs of the social security taxes.

If you are concerned that you not owe, make sure you pay your estimated taxes or that your withholding is properly setup

Answer 2

Any income you receive from a job is subject to income tax. Depending on your status with the employer, you may be a normal employee who gets a W-2 which would be simple wages on the 1040. But more than likely, it's independent contract work in those situations.

Independent contractors usually get what's called a 1099-MISC. If not, then they still have to record the income but have to do it through retrieving the records (e.g., bank deposits from work at home employer on bank statement).

Independent contractors are seen as Self Employed, so you will not put your income on the 1040 under wages, but must complete a Schedule C first.

The Schedule C will allow you to record the income and deduct expenses with you work. It's pretty self explanatory. The only real fuzzy parts are when you get into depreciation and home office expenses. THe former may not apply to you since you worked at home, but the latter would. Consult the instructions for more information.

You will also be subject to Self Employment tax in a Schedule C situation which will cover your SS and Medicare obligations.

If this all confuses you, go have your taxes done by a tax professional or CPA firm. You can even deduct the expenses if you itemize or dollar for dollar on the Schedule C if you are an independent contractor! I hope that helped.

Answer 3

Most of the online jobs consider you an independent contractor, so don't take out taxes. They might or might not give you a 1099 - if they pay you over $600 in a year they are required to.

Yes it counts as another job, and yes you owe tax on it. And if they don't withhold taxes, you'll be responsible to pay them all yourself. And unless it makes you eligible for a larger earned income credit, there wouldn't be anything to get back - it would all be money you owe.

Answer 4

This will be your self-employed income (if you are not an employee). You use schedule C/C-EZ (Form 1040) to figure out your income (income minus expenses).

You must file return if your self-employment income is $400 or more. Your self-employed income is subject to employment tax at 15.3%. For this, with your Form 1040, you attach Form 1040 Schedule SE.

Answer 5

All income received worldwide no matter the source is consider for income tax purposes.