I was recently employed for a performance gig on-campus this month. I wasn't told when I received the paycheck that I would have to file this payment under "self-employed" status and if I did not, it would be punishable by law.
As a college student, I do not keep important documents such as those in my dorm room because it's too risky (idiot facilities workers and students). My mother tells me that I cannot claim this because I am still a dependent until I graduate.
What is the proper procedure for this when I have to file taxes? The payment was only $25, so I'm not sure if the amount is even enough to file--last I knew, if you earned $600 and above independently, you had to file it. I could be completely wrong here, so I'm hoping you guys can help me!
Thanks!
2007-12-21 06:32:35 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I do have a job other than performance gigs--I work on campus. But, I never make enough to file anything else but the "express" filing form.
2007-12-21 07:04:17 · update #1
OK, here's my take on your situation. First of all, don't panic. The official laws state that any income you make, you report, no matter how small. The reality is that if you made less than $600, as you were told, then the company will not be furnishing you with a 1099-misc. If they don't send one to you, they won't send one to the IRS. This means that if you don't report the income, the IRS won't know either way.
Now, let's say you followed the law and reported that income anyways. Unless you had a lot of other income to go with that $25, you won't have any income tax, because your deductions will zero out your taxable income. So the only tax left to worry on that would be your self-employment tax, which would come out to $3. That's it. Three dollars.
Still worried?
2007-12-21 07:38:24 · answer #1 · answered by darkridr 6 · 1⤊ 0⤋
If a company pays you more then $600 then they have to report it by giving you a 1099. When I was younger you had to report your income if it is above $1500, it might be higher now. Your mom is wrong about not reporting the money because you are a dependent. She can still claim you as a dependent. If you made money this year (>$1500) doing other things then you will have to report it.
2007-12-21 14:42:30 · answer #2 · answered by John 3 · 0⤊ 1⤋
You are correct about the $600 threshhold. If this is your only self employment income there is no need to file
2007-12-21 14:37:25 · answer #3 · answered by jwishz 7 · 1⤊ 2⤋
If that is your only self-employment income, there is no self-employment tax. That only starts at over $400.
2007-12-21 16:21:05 · answer #4 · answered by CarVolunteer 6 · 1⤊ 0⤋
fagettaboutit.
Not enough to be considered. Not enough to be issued a 1099.
2007-12-21 14:37:30 · answer #5 · answered by ed 7 · 0⤊ 0⤋