Do i need to file for taxes if i make less than $1000 this year??

Question

HI i am a resident of Maryland. This year i made less than $1000 as a mystery shopper. I am wondering if i need to file for taxes, since the company does not file taxes for me?? I am a parent of one 11 months and pregnant with anonther one. I think my husband's tax return has my name on it. So if i need to file what form do i need to fill out?? This year is my first time making money. PLEASE HELP

Answer 1

Mystery shoppers (for whom the company does not issue a Form W-2 or withhold taxes) are "independent contractors". They have to file if they make more than $400 (because of self-employment taxes). (Actual "employees" do not have to file unless they make several thousand more, but their employees must issue a Form W-2 and withhold taxes.)

You file a Schedule SE and either a Schedule C or a Schedule C-EZ.

If your husband is filing jointly (the box for "married filing jointly" is checked and you sign the return), then the Schedules listed above get attached to it.

If your husband is filing separately (the box for "married filing separately" is checked and you do not sign the return), then you file a Form 1040, 1040A, or 1040EZ (read the instructions to see which is allowed, then pick the simplest if you have multiple choices) and attach the Schedules listed above.

Answer 2

Since you are married, that income is fully taxable if you file a joint return. It would not be subject to income tax if you filed Married Filing Separately but you'd still pay more tax in total that way and would lose out on a number of credits that you may be entitled to, such as the EIC.

If you were paid as an independent contractor -- very common for mystery shoppers -- you'll have to pay the Self Employment taxes on that income. You can deduct your out of pocket business expenses though and that will reduce both the SE tax and any income tax payable. File Schedule C-EZ with your joint return to account for the income and business expenses. If the net profit is $400 or more, attach Schedule SE to calculate the SE tax.

Answer 3

Actually yes you do since social security and medicare haven't been deducted.

You can continue to file a joint return with your husband, but will have to show your income and any allowable associated expenses on a schedule C or C-EZ, then fill out a schedule SE to calculate your self-employment tax. The numbers from the bottom of those two schedules will transfer to your joint 1040.

Answer 4

No you do not have to pay taxes if you make less than 5000 dollars a year, and you are eligible for government assistance.