2007-12-06 17:51:20 · 6 answers · asked by Christy A 1 in Business & Finance ➔ Taxes ➔ United States
Check on-line to see if you have to file. If you make any money from interest (money in the bank), I think you have to file.
But you only have to pay taxes if you make over a certain amount.
If you don't want to go on-line, many places (banks, post offices) often have tax booklets, and you can take one home and see what you need. There are also good tax books in the library or in bookstores.
But if you get put in jail or worse for evasion of taxes, this will be terrible for your kids. You have to be responsible, and find out. "But judge, I didn't know what to do!" just won't get you out of jail.
2007-12-06 18:01:50 · answer #1 · answered by Madame M 7 · 0⤊ 1⤋
If you make $400 or more from being a clown (which would be a self-employment gig), you MUST file a tax return because you would owe self employment taxes.
You may be able to claim EIC if you have earned income, but as a self-employed person, you really must be able to show your paper trail. Have the people who hire you sign a contract (and keep a copy), have them pay you with checks or money orders, photocopy the checks or money orders BEFORE you deposit them in the bank. (Also remember to deposit any tips you make.) This way you will have proof that you actually did make the money.
2007-12-06 18:13:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You not only can, but are legally required to. Keep very good records of any business-related income and expenses.
You'll fill out a schedule C or C-EZ to show your income and expenses. Expenses could include costumes, balloons, advertising, or anything else you have to buy for your clowning.
You'll fill out a schedule SE to calculate self-employment tax.
You'll fill out a form 1040 to calculate your tax. If you are eligible for EIC you'll put it on the 1040.
2007-12-07 01:08:14 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
You should get all the paperwork done so that your business is legit. This will involve filing papers with city (business license), county (fictitious business name), state (state tax agency), and federal agencies (IRS). This way, you can start deducting all your business expenses. If you drive to and from a party, then your mileage is deductible, for example.
2007-12-06 18:06:02 · answer #4 · answered by JoeC 2 · 0⤊ 0⤋
You'd better, unless you're not afraid of the IRS>
2007-12-06 18:00:41 · answer #5 · answered by Fauna 5 · 0⤊ 0⤋
Can you? Yes you HAVE TO !
2007-12-06 17:56:29 · answer #6 · answered by Anonymous · 1⤊ 0⤋